Unfortunately, you cannot contribute to the community projects fund via BitCoin, though, because "subscription-style" payments are not allowed via BitCoin at the payment processor.
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Do you get Bitcoins, or SendOwl converts them to US dollars?
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I believe they are converted to US dollars when the transaction completes. Molly doesn't have a BitCoin wallet or anything.
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No moral problems with the waste this encourages?
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I've not heard arguments that BitCoin wastes resources at a level close to the traditional way currencies are supported, which is to run a government and support an army. So an argument that it is a "wasteful" currency would similarly argue all other currencies are "wasteful".
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