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Yep, looks like the earth that is plugged into a tab on the metal stereo cage. At least that's what it does on my classic with a double din stereo (ie, JDM classic)
Yes as above it fits on a tab on the oem double din stereo cage. At least it does on double din models! I assume yours was double din originally?
It's a single din and was originally. There was no cage when I took the OE radio out either, I guess one of the previous owners must have forgotten to put it back in. I'm guessing it's had some ICE in at sometime in the past as a couple of the wires have connectors attached to them.