1. Keep walking. It's a straight shot from the market to the palace - you can even see the gates from where we're standing.
2. He has only to ask. ;)
3. With so much stuff overturned in the confusion, nobody really knows whose is whose. That said, looting during catastrophe is decidedly unheroic, so he may need to restrict himself to items found on the ground. Unlike most medieval towns, Midhaven has flush toilets, so the ground is relatively clean.