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It would happen a lot, but it's still fine to use, I'd say. It is a legit name. I say if you like it, use it. It's cool.

It's a wildly popular boys name in the NL and come to think of it an phonetic spelling of the English pronounciation of 'Sam'. Whether the two names will be mistaken for each other depends largely on your pronounciantion.

No. I knew a guy whose real name was Jonathan but he went by Sim for some reason--I can't remember why. I never heard anyone call him Sam by mistake.

Sorry but it most definitly will

Yes and yes. Also, it reminds me of semen. Sorry.