At the moment I'm planning on putting our PR guy Erik in charge of proofing submissions; some things won't even be appropriate to include, or might include references that could be copyright dubious to other parties, or just not matching the general tone of the game, or whatever. That stuff is fine for mods, which players are free to post as they like, but anything that goes into the official game gets vetted and very likely subtly edited by us. That said, depending on the volume, I imagine that Erik wouldn't mind some help on that.
In terms of the conversational flags and variables, that's honestly still being worked out. We have a few early example cases, but mostly we've been focused on the actual mechanics of the hopes and needs, rather than on the wording to go with. Not that the wording isn't important, but when the mechanics change that has a good chance of invalidating all the wording that came before, so we try to front-load the mechanics. I imagine this will also grow some during beta, as players request things we hadn't thought of, etc.
And yes, all text strings are in external XML files, as with AI War, Tidalis, etc. AI War and Tidalis have been both localized to German, and AI War also to Russian, for regional retail. We don't tend to do localization for digital sales because our games have a
lot of text (both AI War and Tidalis have well more than a game normally would), and worse yet these are frequently updated. So you wind up with a lot of challenges there, and we've found it's generally only worthwhile to do if a publisher does it for us and foots the bill (and is able to offer front-line support in the language in question; we wouldn't want to be unable to support customers that don't speak the same language but have some issue).
In the case of AI War the problem is compounded by the massive wiki that is needed for really being able to fully wrap your arms around the game; translating that would double or triple the amount of text, and it changes even more frequently. With AVWW, my ardent hope is that there isn't a
need for such an exhaustive wiki, though if someone wants to create something like the minecraft wiki I'm sure there will be folks who are very appreciative.
Anyway... so we'll see where we wind up, and how popular the game really gets, and all that sort of thing. Obviously if there are buckets of money floating around, why not localize, etc. This is a much less niche game than either of our other two titles, so who knows? But I'm certainly not counting on that, so for the moment localization isn't really on my radar, although we're doing things in a manner that make it localization-ready just in case. We had to retrofit AI War 2.0 for localization-readiness, and I don't ever want to have to do that again, heh.