YES! Please drink extra water/Gatorade and bring extra chap stick. Telluride is at 8,750 ft. Roughly 2,000 more ft. higher than Denver and Colorado Springs to put in perspective. The upside; takes less to get a buzz!
No, there is a free gondola system that gets you everywhere you need to go. The gondola market station is feet from the mountain lodge where you can get grocery items and liquor.