zacky, [μ] in the formula is the value of permeability at the working point as determined by the current. Because the core permeability varies with flux density, and flux density varies with coil current, the inductance varies as the coil current changes.
As you probably know, the magnetic characteristic for a material is usually given in the form:
B (flux density) versus H (magnetising force)
It is also possible to plot:
Relative permeability versus H (or B)
(this can be derived from the B-H plot as the permeability is the slope of the B-H curve at any point)
Note: relative permeability is the ratio of actual permeability to that of free space; hence it is dimensionless.
i.e. [μ]r = [μ]/[μ]0
Relative permeability for mild steel for example starts at about 2000 at zero field, increases with B to a peak of about 2700 at B=0.5T (5000G) then falls off as B is increased further and the material goes into saturation.
As all soft ferromagnetic materials are non-linear, the manufacturer can only really quote the initial or peak value of permeability, although they do publish characteristic curves. If you have a curve of permeability versus H, you can calculate the value of H for a particular current (H=NI/l where l is the length of the flux path through the core) then determine the value of permeability from the curve, use this in your formula to find the inductance at that value of current.
As for your question 2, EPete has already answered this. The formula assumes a closed path core i.e. no airgap. In this type of coil leakage generally only occurs when the core has become so heavily saturated that its permeability has become so low that flux hardly prefers it to the surrounding air, or because the flux path is relatively long (compared to the size of the coil) so that some flux is encouraged to "take a short-cut".
If you do have flux leakage the prediction is much more complex, and is usually solved by finite element analysis or by using empirical curves.