There's are settings for spectating somewhere under settings (interface, probably). The main issue is that if you disable fullview then you can't easily switch between teams unless the 'enemy' team has units that are in los.
Seeing unit selections is under settings->interface->selections. Most/all selection widgets have an option for viewing allyselections, which also works for all players when spectating. I find it works best when using team-colored selections, since it makes it easy to tell who is selecting what.
Seeing the player's cursor in UI would require perfect camera following, which exists but is not really supported (for lots of different technical reasons, and also camera info is not stored in replays by default). There's also an option somewhere for following the player's cursor, and a hotkey for it but I don't remember where any of that is. I find that option to be more of a pain in the ass than it's worth, since you end up missing out on most of what's going on.