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There are two ways to set these system properties. The first way is using the standard -D<property>=<value> syntax when executing java or if you are using Felix' standard Main.java launcher, you can put the system properties into the conf/system.properties file so that they get set automatically each time you execute Felix.

What is the daemon status of framework created threads?

The framework creates a few threads for handling specific tasks, such as event delivery or handling start level change requests. All framework threads are explicitly started as daemon threads except the event dispatcher thread. The logic behind this is that the event dispatcher thread should exit when it is done delivering events. However, if an application is hosting an instance of the framework, it is possible to make the event dispatcher thread a daemon by starting your framework instance from a daemon thread, in which case the event dispatcher thread will inherit this setting.

For bundle developers, it is probably best to explicitly define any created threads as daemon or non-daemon to avoid any ambiguity.