Yes, for 1 an external monitor does the trick, 2 is more complicated.
For 2, the Surface pro already has plenty of RAM, but certain applications refuse to work because of the lack of a decent video card (by contract my 5 years old workstation has 4 GB of RAM and 500 MB of basic video card and it works just fine with the same apps).
I am still not sure how Azure implemented it, but most app virtualization technologies I looked into are expensive and complicated to implement (they are designed for enterprise environments). They either require Citrix or similar solutions. Remote Desktop works ok with some applications like Inventor when it can be used with RemoteFX, but don't work well with Alias (which uses OpenGL instead of DirectX). Plus you need a pretty decent network connection.
I looked around, but no sign of dockable or external video card, maybe it isn't feasible?