1. Depends on what you mean by bad press. If the company sells well enough in Japan then I don't think whatever people think of it over here will have any effect on that.
2. But most of that is relatively simple stuff that most VN companies could most likely do even without any help from the developer.
3. There's nothing that says a western release is required to remove mosaics. Plenty don't.
4. Well it depends. When they sell their games at $80 in Japan they're looking to pay for the cost that went into making the game in the first place. The cost of localizing a game probably requires nowhere near that much money for them, and they would most definitely not lose money in the process.