Hari hi. Thanks for the feedback.
displaying flarum posts as native Wordpress comments
There is no plan to make comments wordpress-native. Doing that would remove all benefits of using Flarum in the first place. You wouldn't get access to likes, mentions, or any other feature added by Flarum extensions.
Maybe what you're looking for is a plugin to sync your native Wordpress comments to Flarum?
The Flarum infinite loading should be used inside of the iframe already.
There is a "Login to reply" button that's already present. You can see the guest experience on my demo website. It should work well with social logins.
iframe need to be removed
It's not going to be that easy. I hope to offer a "no-iframe" integration in the future, but the alternative will be a javascript integration, like Disqus.
If you're looking for theming the Flarum embed, that's possible via Flarum Custom CSS. When the extension is enabled, you also get an additional custom CSS modal to add CSS that's only loaded in the iframe to reduce load on the normal forum.