The Fiesta is fine to flat-tow. The manual transmission requires nothing more than placing it in Neutral. They are great cars, and tow very well. I put a hitch on mine as well, and towed up to 2,000 pounds, but I had the turbo version. I'd keep the non-turbo to trailers under 1,000 pounds unless it's completely flat terrain.
BTW - the scrapes under the front bumper are probably from pulling up to taller-than-typical curbs. I doubt it has anything to do with being towed unless they started with a dolly prior to setting it up for flat-towing.
As far as reliability, the only problem area on the manual models, is the factory rear shocks are not very long lasting. Lots of aftermarket options that will last better. And Sync on the earlier models has some quirks, worse with some phones than others.
2000 Ford E450 V10 VAN! 450,000+ miles
2014 ORV really big trailer
2015 Ford Focus ST