Yep, that approach should work for providing redundancy to the DC destination.
The static route has a higher priority than the VPN peer and so should take preference all the time its available (MX route priority is here, https://documentation.meraki.com/MX/Networks_and_Routing/MX_Routing_Behavior). The MPLS router will need to be connected to one of the LAN ports of the MX, and yes, the MX is a single point of failure. I can't see a way around a single point of failure with what you have without adding more kit - but the MX devices are pretty robust anyway. In most instances you shouldn't need the transit subnets specified as static routes, you just have the connected route (between the MX and the router) and the tracked static points to the far end of that for the DC subnets - the MPLS router will take care of routing from there.
Like you said, internet connectivity won't fail-over in this scenario as if you try and put a static default via the MPLS network it will take priority and won't use the local internet unless it fails. Thinking of ways around this... if your MPLS provider can give you a second IP address from the MPLS router then you could do it by using that on WAN2, and then setting preferences for internet traffic - its not overly pretty, but might just work, and depends on how flexible your service provider is.
Yep, if the MX fails your life becomes difficult, but not impossible. You'll need to establish internet connectivity to change the routing. You should be able to get the MS connected to the internet by using the Local Status Page on the MS. You can modify the Uplink IP address settings from here (the one it uses to connect to the Meraki cloud), so you could set the IP address and default gateway to get internet connectivity via the MPLS circuit (the routing for this is separate to the switch routing), and then once connected reconfigure the switch routing as needed.