Let me break this down into numbered answers.
1) Yes. Our localization 'department' consists of 3 people. Myself (Senior Editor), Tom (Translation Ninja) and Kenji (long-suffering boss/coordinator with the Jpn dev teams). I think our output for a team this size is pretty insane too.
2) Most don't for content/style, but all have their own specific limits/method of handling the text (excel files, open office, etc, etc). At XSEED we have our own guidelines, but the main goal is express the 'intent' of the text rather than a literal translation. That's really what localization is anyway.
3) It is most delicious. I am a big fan of the pig candy.
4) Saw the phrase somewhere and liked it. Alas, no Latin for me.