Yes, if you crate-train him, eventually you can get rid of the crate - but he'll probably still reagrd that spot, if it's somewhat protected, as his safe spot anyway, crate or no crate.

He's still a puppy, so he will chew, so crate with plenty of toys should safeguard your budget!

I would ask the other dog owner if it is okay for the two dogs to meet, and if so, let them, this way he will be socialized with other dogs, which is something you definitely want. For now, just keep him on the leash, so you can easily control him, just as you don't know yet how he'll react.

Hope this helps!