Konami going with the lowest bidder on a translation is nothing new and not even related to games. That's just business. You go with the best deal.
Yep. This is basically what every company that ever uses freelancers does. You grab the cheapest one and treat him/her like shit because freelancers are easily replacable.
I've had some experiences like that myself. "Well, according to guidelines the payment deadline is in 45 days, so we'll pay you after that. If you don't like it you can quit." And you don't quit, because even if you have to wait 60 days for your money, it's still money you need
. Plus, working freelance is often the only way to go if you want to do certain types of work.