The towers you mention have heights somewhere around 1700 feet or so. Assuming that the sniper is shooting down at an angle of 45 degrees, that works out to a distance of a bit over 800 yards.
The way militaries work is that you have infantry grunts who are expected to fight at typical distances closer than 150 to 200 yards or so. Mixed in with the infantry is what is called the designated marksman, who is expected to shoot quickly at targets out to about 600 yards or so. This isn’t a sniper, but they often shoot with “sniper” rifles.
Snipers work beyond 600 yards. They typically work in teams, and unlike the designated marksman, they are shooting for accuracy, not speed. They also work in pairs, and are not embedded with infantry or other troops. Snipers receive more training than marksmen.
800 yards is easily within range of a modern sniper. It’s really not that far outside of the range of a designated marksman, so even a designated marksman could probably be fairly effective at that range.
1. Would a rifle bullet still impart enough velocity to be effective at that height towards a ground target?
Oh yeah. Easily. Not only is the velocity still quite deadly, but the bullet is still extremely accurate at that range.
2. With the help of a spotter, could you effectively engage targets at ground level
Yep. No problem.
3. Is return fire from the ground possible? Assuming either somebody with a mounted machine gun firing back or somebody with a scoped rifle themselves.
Return fire is definitely possible. A modern hunting rifle shoots about 1 minute of arc (MOA), which translates to about a 1 inch group at 100 yards and a 10 inch group at 1,000 yards. Shooting up at someone who is 800 yards away isn’t going to be the easiest shot, but it’s definitely doable.
A mounted machine gun should be expected to be able to put rounds on target out to about 1500 yards or so, and can shoot suppressing fire (not necessarily accurate, but accurate enough to make the sniper on the roof want to duck out of the way) out to several thousand yards. A machine gun will stop the sniper in a real hurry. Depending on the mount, you might be better with a hand-carried machine gun with a bipod. Otherwise, depending on how the gun is mounted, being able to tilt the gun up at the angle required might be a bit of a challenge.
Even a light, hand-carried machine gun is expected to be able to effectively hit a target out to 500 to 700 yards or so, and can shoot suppressing fire out to 2,000 yards or more. You might run through a lot of ammo to get him, but your sniper is definitely within range.