Everything seems normal. How do you expect a 1 hour video with effects to render faster ? I'm afraid you have a completely wrong notion how this stuff works. For the output simply use H.264. You need to read up on this stuff. This is basic.
You use AE to make shots or short sequences because AE is a compositing and motion graphics app. You edit a video In Premiere Pro. The only possible scenario for creating a comp in AE that is longer than a few seconds is if the shot and the effect I had to add to the shot needed to last for the full five minutes.You talked in the first paragraph about creating a one hour video with music and picture. I can't conceive of a single situation even for that scenario that couldn't be more easily handled in Premiere Pro. Even if you wanted to apply effects to each picture and do fancy transitions between the images I'd break the AE comps up into phrases in the music that were 4 to 8 bars long.
As for the file size AE's default setting for the Output module is for Lossless because AE is intended primarily for creating high quality production masters of shots and sequences for further editing in a NLE. If you want to render a delivery format that is better handled in the Adobe Media Encoder. Here again, if you render your production masters and then edit in Premiere Pro the final render will still be faster than trying to render everything in AE.
As Mylenium said, you need to study up on how the software works, standards for delivery of video, codecs, rendering. and workflow. The fastest way to become totally frustrated with AE and dissatisfied with your rendered movie is to jump right in and assume that everything will work automatically. You have to study up.