My major concern is about the function of the Thunderbolt connection in
the back of the display. Does it work as a HUB or it works as an IN
connection?
Yes, even you connect with the other TB port, the hub will still function (USB 2.0, Firewire 800 and Ethernet connections).
Do you think the power of the Mac is enough for the monitor also?
You have to buy an adapter for MagSafe 1 to USB-C -- which I am not a fan of due to 3rd party manufacturer's quality. I will highly recommend to use 14" MBP's power supply for the purpose.
Option 2: You can get a good Thunderbolt Hub (such as OWC or Caldigit ...etc.) - it can deliver the power and data for the MBP, with extra connections (such as USB 3, card reader ...etc.) - all by 1 single TB wire connection.
BTW, no matter your choice would be - you still need to get a TB 3 to TB 2 adapter to connect TB display to MBP or TB Hub.