Yes and yes.
From what she wrote, she has been a very good wife after the fact. Now, all that "good" will be forever tainted.
Only if one chooses to view it as such. All hubby should care about is who she is now. If he can't get past that, he needs to be elsewhere and she deserves one who will accept the whole package.
It is not necessary to "open up" until it is not an option.
So a lie of omission is better, so long as it perpetuated?
The extenuating circumstances of what she did with the money washes some of the "unwise" action away. IMO
Something else her hubby should recognize and take into account. This only reinforces my first point above.
Now, by revealing her past, she has unwisely opened herself up to the small mindedness of common men and women.
This is the ultimate reinforcement of my point. If hubby can't get past something she did half a decade before they married, then he's one of those small-minded common men.
I understand your "playing the odds" here; that it's worth taking the chance of exposure
that will more certainly lead to worst consequences
vice the certain self-disclosed exposure
with what may be
lesser circumstances. But there's more than a simple risk trade-off here. Starting a marriage with a violation of trust, even one which may never be discovered, is a poor foundation. Poor foundations usually end up cracking at some point.
In the interest of full disclosure here, I will admit I'm looking at this from a particular point of view; not just colored by morality, but rather also my stage in life. I know that, if I was to learn this about my wife, it wouldn't faze me a bit (despite my being fairly conservative in these matters), but this is because we are approaching our 30th wedding anniversary. Our union has been forged into the finest hardened steel by the fires we have faced together over three decades. Anything that happened prior is ancient history lived by a completely different person. I'm not so sure I would have quite this level of comfort with the past were the past not so long ago, as if I had learned this just a couple years into our marriage rather than 30. But knowing this also reinforces the idea that the past is truly the past (which you have said yourself). Whether you learn it 3 years in or 30, it is what it is. Having lived through so much more, I'm better qualified to know that simple truism. It will be harder for OPs hubby without that completeness together, but the underlying principle is still the same.
Hubby needs to also understand how hard this was on his wife. First, her having done what she did in the first place, her having been strong enough to put that behind her and move on, and her having disclosed. Three very difficult chapters in her life. He is facing but one, and if he gets through it, he and his marriage will be stronger. Again, I say this as someone with much more experience, and there's possibly no way to communicate that to hubby as sometimes time and experience are the only teachers that get through. (hence your preference to avoid the disclosure in the first place; I do understand, even if I see it differently)