From my own experience and research -
1. A little sugar is okay, but it's all going to dry out. Honey is better - adds a little extra character to the finished product.
2. Some yeast throws sulphury compounds that will require aging before they disappear. This is not a bad thing, you'll just need to be patient.
3. There are a ton of threads here on the forums on "back sweetening", letting the bottles carb up, then pasteurizing. Definitely seek them out.
I started a batch of cider in mid October. It finished at 1.000 in about 2 weeks, but it still had some sulphur present in the nose. I bottled a very small batch, then tucked the rest of it in some secondaries where THEN I added sticks of cinnamon and some scraped vanilla bean.
The bottles without the cinnamon turned out FANTASTIC. I brought them to share with a dry cider-loving friend at Thanksgiving and it was passed around and quickly consumed. Very well received. It was very dry, but had a wonderful appley quality to it and great aroma. (it was very simple - 3 gallons local MA cider, 1 lb. local MA honey, and a dry English cider yeast - pretty sure it was a White Labs strain). It was also crystal clear (amazing, given that I was using pasteurized cider)
The "rest" that I bottled up the week of Thanksgiving were back sweetened just a bit with more fresh cider, a bit of corn sugar (boiled in water with a cinnamon stick added), a couple ounces of lactose, are now very drinkable and very tasty.
I've learned that you can make a high quality cider that folks enjoy that is also very dry.
You can also back sweeten if you choose, but it requires a bit more watching, patience, and a fridge to store them (or you'll have to pasteurize)
Cider is amazingly easy. I really do think a lot has to do with the quality of the cider you start with, and your yeast strain. The rest is recipe experimentation, and mother nature.
cheers!
p.s. I was planning on making another batch of the dry stuff, since it really did turn out very nice - like a light refresshing dry sparkling wine. Very good with rich foods, and dessert as well.