In Visual Studio 2012, using publish profiles along with web deploy simplifies the deployments quite a bit. However it still is missing few things or may be I don\'t know how to
You are free (and encouraged) to manually edit your pubxml files, so feel free to remove the password.
To switch to NTLM, change AuthType to NTLM in the first PropertyGroup.
Platform and Configuration remain build configuration, the user file just stores them so Visual Studio knows what the last configuration you deployed was.
By multi-server, do you mean a web farm? If so, you might try looking at the Web Farm Framework which basically performs MSDeploy syncs from the primary server to the others.
Alternatively, you could switch to the command line and use postSync to upload and execute a batch file on the remote server that triggers the other deployments from there.