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It’s not a good idea to plaster over broken plaster (unless by broken you’re referring to cracked, in which case that’s perfectly fine). However, broken plaster can be a sign of a larger underlying issue like foundation damage or severe damage to the lath holding up the plaster, so it’s worth investigating before you simply plaster on top of the damage.

While it’s most common to sand plaster dry, it is possible to wet-sand plaster, too. Doing so can reduce the amount of plaster dust released into the air and make it easier to work in smaller, more delicate areas (such as around wall trim). However, some people find that wet sanding leads to more imperfections, which is why larger walls are more often dry sanded to ensure an even finish.

Yes, you can install drywall over plaster, but there are important factors to consider. While it can create a smooth, flat surface, it is often not the best approach. Installing drywall over plaster will increase the wall's thickness, which can cause issues with existing window and door frames that may no longer fit. You might also need to adjust power outlets to keep them accessible. A better, though more expensive, option is to remove the old plaster and lath entirely before installing new drywall. Drywalling directly over plaster seals in the old material, and if any problems arise later, you will need to remove both layers down to the structural beams for repairs. Given the potential complications, this job is best handled by professionals.

Smaller is better when patching holes with spackle. Any holes wider than four to six inches in diameter tend to be too wide to repair with spackle alone. You'll likely want to patch bigger holes with a drywall panel. 

Even holes measuring up to 6 inches may be challenging to fill with spackle alone. For best results, purchase a wall repair patch made from wire mesh. Cut the patch to fit over the hole, then use the spackle to hold it in place. Apply the spackle over the patch as you would for a smaller hole.