Not necessarily true. I have had several occasions where I told my boss that I had this offer and what does he recommend to do. I always got a raise and wasn't laid off.
Do you just think it's that way or do you have experience? I used to imagine management would take this personally but they generally don't. I wouldn't recommend doing this every few months though.
Admittedly no, I've never known anyone to do it but people tend to be pretty cagey about talking about salary and job hunting and that kind of stuff, so who knows? I also have never seen anyone poop on their manager's desk but can speculate about what would happen thereafter :-)
They may take pooping on their desk personally so I would advice against that! Try asking for more money first. If that doesn't work then you can poop on their desk.
This makes little sense. Why didn't they say no in the first place? A successful business does not harbour a grudge like this. The cost of hiring is high, even if they replace you at your former wage the rest of the cost/disruption is expensive.
Yes, I think this strategy has some real downsides. If you're willing to go this far just quit; one who accepts a counter-offer will most likely be seen as suspect thereafter until they leave.
What distinction are you making? If by "let go" you mean laid off, the rules as I understand them require the business to actually eliminate the position.