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Stupid question, but without any video support at all, how do you even install the software you need to use it as a headless server?
Insert the SD card into another machine, add a boot and filesystem partition, install OS onto it, mount the filesystem of the SD card, chroot to it, and install sshd.
Is this a good machine for a pihole? Can I power it via usb from my router?
Yes and yes.
(comment deleted)
How long until it’s embeddable inside an ordinary-looking ethernet cable with no nondestructive detection methods other than x-ray?
Should be possible now with a less capable (microcontroller-ish) chip. Delivering power may not be feasible without custom PoE hardware on one end.