1- Is is reveled over a night? or over several years in these two cities (1) Makkah & (2) Madinah?
2- Do the above opinions contradict each others i.e., revealing over a night and over several years in two cities? Is one opinion is correct and another is wrong? or both are wrong and/or correct?
It was revealed gradually (tarrteelah as mentioned in the Quran) over 22 years and few months period. The mention of Inna Anzalnaho fi lail latul qadar means the message start delivering to the messenger on that chosen and blessed night. That night is of high importance, that is why Allah chose it and made it blessed till Qiyammah.
The simplest way to look at it is what smooth_guy explained. Here is another view:
The time when the holy prophet (pbuh) came to guide this world could be compared to a dark night. Usually night is characterized by all sorts of negativity and gloom. But that night became blessed because of the being of the holy prophet (pbuh) and message of Allah. Thus this night is better than any other night i.e., the time of the holy prophet (pbuh) is the best of all times since the light of final message of Allah was dawned on this world that turned the darkest night into dawn.