Does it create problems to allow Momentum to "breed"? (i.e. I could spend 1 Momentum to get 1d20 and then roll in my Focus range, thus creating Momentum!)
Not really, especially as the GM can do it as well (spend DSPs - Heat in Infinity, Doom in Conan - for bonus d20s on NPCs, add surplus Momentum back to Dark Symmetry; in MC3 terms, the "Slave to Symmetry (1)" rule is applied to all NPCs in subsequent 2D20 games).
Bonus dice from Momentum is potent, yes, but it's also uncertain, because that extra dice could roll nothing, or worse, roll within your Repercussion Range and cause you more problems. The risk serves as counterpoint to the potential benefits.
Should the "spending a DSP gets you 2d20 instead of 1d20" Talents apply to Momentum d20s?
Yes, but the limit of three bonus d20s still applies - it essentially means you buy two and get one free.
Does it limit the need for DSP too much?
Not as much as you'd thing. The GM can generate a little on their own terms, but most importantly, the growth of DSP under these rules would be an option that exists even when the players don't have available Momentum, so a little addition to Dark Symmetry can be the boost a player needs to generate a few Momentum in the first place. DSP are still paid for Response Actions as well (and the limit of 1 Response Action is removed under the Infinity and Conan rules; each successive Reaction a given character attempts during a round costs 1 more than the one before it)
Finally, the normal MC3 rule requires you to succeed at something before you can spend Group Momentum, but then spending the Group Momentum is very predictable. The Infinity/Conan version makes Group Momentum something to increase your odds of success but it's use is more random.
To clarify here: Group Momentum applies in two cases here.
Under the Infinity/Conan rules,
certain Momentum spends (identified as Immediate spends) can be spent directly from the group Momentum pool (bonus d20s and increase opponent test difficulty are the most important ones here), and these Immediate spends can be paid for with Threat (the setting-neutral term for DSP, Heat, and Doom) instead of Momentum. In all other ways, spending group Momentum works the same in all 2D20 games - you add to the Momentum you've generated on a successful test.
Game Development - 2D20 System
System Design - Star Trek Adventures
Rules questions and playtest feedback to
nathan@modiphius.com