Having never cooked with American ingredients or recipes, I can't comment on conversions or differences in cake outcomes using US vs. UK recipes, but I have been making cakes in the UK since I was a kid, so have a couple of thoughts regarding types of flour etc. :
1) I have never made a cake using plain flour. I have used recipes that required plain flour + baking powder for rising, but I don't think they were cake recipes. I was taught by my mum and also at school that if I was making anything that was supposed to rise (i.e. cakes, muffins etc.), I needed to use self-raising flour.
2) If you do switch to self-raising flour, I don't know if you would need the baking powder as well. My instinct would be no, because the self-raising flour already has the extra ingredient in it for rising, but I'm not sure if the quantities would be the same for a US recipe.
Why does choosing flour and sugar in this country have to be so HARD!? They think we have too many choices in the US!
3) Maybe it's just because I was born and raised here, but I didn't realise there was anything to be confused about flour-wise. For me, it's self-raising flour for cakes/muffins and plain flour for almost everything else - unless the recipe calls for a specific type of flour - but we only keep plain and self-raising flour at home and they seem to be suitable for just about all our cooking needs.