Does Form I-130 offer protection to beneficiary against deportation/removal?

No. He's not allowed to wait in the USA. It will be at least 10 years before a visa becomes available for him and he can be deported at any time.

No. An I-130 doesn't protect them against deportation. It does not change their legal status. An I-130 only means that immigration has determined that their is a valid relationship between you.

A sibling petition will take a minimum of 10 years. Your sibling will have to return to their home country for their interview at which point they will be denied a visa and given a 10 year ban on returning.

There is NO way to "legalize" an illegal alien, not marriage, not procreation, not a form I-130 from a sibling. Your sibling must return to his country of citizenship, and will be barred from reentry for 10 years. Then, after the bar is up, you can petition. If the petition is approved, then your sibling waits in his country for a visa to become available. Depending on country of citizenship, and how many are waiting in line ahead of him, it can take a decade or two to get the visa.

However, since your sibling violated the law, that record will always be against him, and any petition is unlikely to be approved even after completing his 10-year bar. He violated the law, and has no choice but to return to his own country. He can either pay his own way home, or get arrested, jail, deportation and bar to reentry. If he wants any chance at all of ever getting immigration, he'll go home immediately. If he's deported, he's more likely to be denied when you can petition.

No. Even if your I-130 is approved, since your sibling has no status in US, your sibling cannot change status in US no matter what. S/he has to continue the rest of process through at US embassy/consular in her or his country. I-130 is Petition for Alien Relative. Approval of I-130 doesn't mean visa or status at all.

Waste of money filing the I-130 an illegal cannot gain legal status in the US

I-130 does NOT protect against deportation. DO YOUR HOMEWORK FIRST. this issue has been discussed in yahoo answers so many times.

The person can not be here in the US illegally. Under the I130 you can sponsor a relative to come here from another county. She needs to go back and do everything legally.