A.  Yes, it's still emitting moisture, and although you could place it on the bottom, it's more beneficial to have the moist air flowing downward, which also distributes the humidity more evenly. If you were to place it on the bottom, you'd have to position it against one of the four walls, Not only will a good portion of the humidity be isolated to that particular spot, but the humidifier will also take up some valuable cigar storage space.

Another, and perhaps better solution, would be to nix the Velcro mount and replace it with a magnet mount. It's also much easier to remove when it's time to recharge.