Tokyo-Kyoto-Hiroshima

In early April, my parents will be visiting Japan for a bit under two weeks. I am interested in using the JR Rail pass and want to make sure I have the details right for their travel. Our itinerary is as follows:

Day1 Narita Airport to Kichijoji. Cost 3,000 for Limousine bus.
Day 2 Local Tokyo.
Day3 Tokyo to Kyoto. Cost 13,420 for SHINKANSEN HIKARI.
Day 4 Stay Kyoto
Day 5 StayKyoto
Day 6 Stay Kyoto
Day 7 Kyoto to Hiroshima. Cost 10,790 for SHINKANSEN HIKARI.
Day 8 Stay Hiroshima.
Day 9 Hiroshima to Miyajima (Round Trip). Cost 1,140 for JR and Ferry.
Day 9 Hiroshima to Tokyo. Cost 18,050 for SHINKANSEN SAKURA & SHINKANSEN HIKARI
Day 10 Local Tokyo
Day 11 Local Tokyo
Day 12 Kichijoji to Narita. Cost 3,000 for Limousine bus.

I have a few questions.

1) Am I identifying the best options for travel between Tokyo-Kyoto-Hiroshima? I used the Hyperdia link and took off the Nozumi bullet train. I will be traveling with my parents, but I am not eligible for the Pass, so I need to find the most reasonably priced options for myself as well.

2) Does the JR pass cover the rail trip and the ferry to Miyajima?

3) Does the JR pass cover local rail transport between a station like Kichijoji and Shinjuku for instance?

4) It seems like the best option for my parents would be a 7 day pass that covers the trip from Tokyo to Kyoto to Hiroshima and back to Tokyo. I don't know if a 14 day pass would be worth the extra money since we plan to stay local in Tokyo on the days before and after the Kyoto/Hiroshima trip. What do you think?