Being cluster aware is not important as in the past 4 years we have never had an unplanned fail over. We realize if this does happen, RS will stop working until failed back to the primary - it's a minimal risk we are willing to take.
As for installing on a different server, this would require an entirely new SQL license. As it was explained to me from Microsoft, if it's on the same machine as the SQL instance, you do not need any further licensing, but installing it on it's own machine, it would require more SQL licensing. So cost wise, this is why it's going on the same machine.
Thanks for all the help!