I like how you can mitosis the unupped by targetting self (original loses its ability obviously, but the new copy gains it). (apparently the upped one can do it even better since target doesnt lose stats)
Upped is to strong if i understand it correctly it combines freeze, shockwave and parallel universe on a stick in a 1 cost ability. well actually the target dosnt lose its stats (reword card text, please) but still parallel universe on a stick is too powerful. I would just add a cost decrease or defense boost for the upped one (or make the new copy gain the original mimics stats +1/+1 with increased ability cost).
Other than that I think this card suits life really nicely (reproduce self, adapt to environment and take counter measurements to possible threats).
Element shouldnt really matter. Well theres flooding, eclipse, holy light and SoR. I suppose it could be a nice gimmick, so go for it unless there is a balancing issue.
I dunno how you would make it so that it becomes soft pc. permanents have nothing but an ability, so this would be even harder pc than SoFo since the useless permanent still occupies its slot. (targetting own permanents would be ok and gaining its ability without stealing it probably to).