Actually, we've tried to talk China into letting the Yuan appreciate against the dollar, and they've refused to do it. The last thing they want is a collapsing dollar, because it makes problems for their exports.
Sure, they hate us and would love to destroy us, but they need us to buy all that junk they're cranking out.
Yes, but that was then, and this is now. What you said was true, but not necessarily now.
As long as they continue to not allow their currency to be freely traded (And become grossly devalued as it should be) they will have the upper hand.