Hello!
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No - this functionality is not there for local users today, only for directory authenticated users. You will need to configure lockout on incorrect password in your Active Directory and the same policy will be honored by OneView.
The audit storage is currently fixed and cannot be increased. Starting OneView release 4.20, forwarding the audit logs from OneView to a remote syslog server is available. You will then be able to forward audit logs and cumulate them at the remote syslog server so the size limit should not be a problem.
No this is not available today. Will pass on this information/ask to our product manager.
Regards,
Bhaskar

Thanks for the detailed description.
To answer your PowerShell question, yes. Get-HPOVAuditLog and Get-HPOVAuditLogArchive Cmdlets are available. The first one will get you individual audit log entries, including the ability to search. The second Cmdlet will download the ZIP containing the CSV.