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It's not recommended they live in the hen house... duck houses are simple four wall construction, though. Yes, they lay like chickens... some breeds better than others. You can eat the eggs but some people don't like the taste and other prefer it. They lay on nests they make themselves on the ground... you give a female duck some straw, she'll make her own nest.
The breed depends on you. Campbells are the best layers... but you may not like their personalities. Pekins are meant for meat but are alot more calm. Mallards are pretty but will fly away because they are wild. Rouen looks like a mallard but is bigger and doesn't fly away. Muscoveys are ugly to some people but are very friendly and they will even roost in trees at night - they also will eat mice.
That's just the tip of the iceburg... then there are bantam ducks... which would require less space but preditors could get them even more easily.
There are runners who stand upright and run all over. There are all sorts... just depends on you, really.
ETA: forgot to mention... sometimes (and this depends on the individual duck) ducks can and will bite chickens and/or other things in your yard. I have one crested that bites all the chickens except one that he will share food with. He tucks his head down and charges them and pulls out whatever feathers he can grab... so not all ducks will get along with chickens... and I'm sure there are some chickens who won't get along with ducks.
Mainly it's not recommended because of their way of life... if you see the mess a duck will make overnight while kept up... you'd understand. It's just better to make a duck only home. You'll thank me in the end for that.
