Hello,
a. The ESP will work on Access Point (AP) mode ( or on Station mode ) , with static IP address set
b. I create html file(with JS script in it) stored into flash memory of ESP , file is loaded with no stack overload to stress RAM
c. The web page will be dynamic( with use of Ajax0 to listen to LED button press, sending command to server, and receiving them
for instance, you hit LED on, command is sent to ESP, and to turn on the LED, response is sent back to client(browser) without refreshing the page
d. I can render background images on the web page as well so the interface looks pretty impressive, the images will be stored into ESP's flash as well
e. i deploy Base64 image encoder to store images as long encoded string of text
f. and yes, WiFi config will be done over the web UI, stored into ESP's EEPROM, but you need a physical button to clear (reset) it just in case
i can complete your work in just few hours, hit me on chat