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No. Replacing only the outdoor unit will lower the efficiency of the unit. In fact, you can lose up to 15% of the unit's efficiency! Even worse, your system may fail sooner than normal and most manufacturers' warranties will be voided. You should always replace the indoor cooling coil with the outdoor unit.

No, you don't want your air conditioner to be too big. Air conditioners control the comfort level in your home by cooling the air and by removing humidity. An oversized air conditioner will cool your home faster, but it will use more energy and will not remove humidity adequately. A unit that is too big for your home will have short run cycles. It may take only a short time to cool the air, but the unit shuts off before enough air blows across the indoor coil where moisture condenses into water and drains from your system. Too much moisture left in the air can lead to mold and mildew problems. These short run cycles also mean your system starts and stops more often which uses more energy and causes a lot of wear and tear. An air conditioner operates more efficiently during long run cycles. The same holds true with heating systems. An oversized furnace will warm the house quicker, but it uses more fuel and causes greater temperature swings in the home.