Hi Jerry,
All good questions which reveal holes in our documentation! Quite a lot of the contents of .env are optional.
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There is no S3 support yet. You might not need it though - after almost 1 year of operation piefed.social only has 14 GB of media saved. I've put a bit of thought into how to minimize disk usage with good results.
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Yes if you leave BOUNCE_ADDRESS empty it'll go back to the sender instead.
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It's configured in the .env file. You need an IMAP email inbox somewhere, which is outside of piefed's scope to provide. The BOUNCE_* stuff is for logging into that inbox, which you won't need to provide if not using BOUNCE_ADDRESS.
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Yes, set MODE='production', case sensitive. AFAIK anything other than 'development' will cause production mode to be used.
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That's used to connect to https://sentry.io for debugging purposes. You won't need that.
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MAIL_ERRORS=True will cause piefed to send you an email whenever a bug occurs. I don't recommend using this unless you're doing development work. You also need to have MAIL_* all set up nicely for it to work - it needs a SMTP server to connect to.