Transformation of an individual Instance possible?

Questions
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2

Each instance can have its own matrix, and that matrix can represent (or be decomposed into) three things: position, rotation, and scale. Making some additions to the earlier example from Ducks in a row anyone?,

const count = 5;
const spacing = 5;

const mesh = new THREE.InstancedMesh( geometry, material, count );
const dummy = new THREE.Object3D();

for ( let i = 0; i < count; i++ ) {
  for ( let j = 0; j < count; j++ ) {

    dummy.position.set( i * spacing, j * spacing, 0 );
    dummy.rotation.y = 2 * Math.PI * Math.random();
    dummy.scale.multiplyScalar( Math.random() );
    mesh.setMatrixAt( i * count + j, dummy.matrix );

  }
}

mesh.instanceMatrix.needsUpdate = true;

scene.add( mesh );

In this case we are setting the position/rotation/scale of the dummy object for convenience, and then taking the matrix derived from those properties and assigning it to the instance.