Can confirm after a few battles, it does indeed work!
Yeah, I thought it looked like it works based on some casual testing, but you'll want to keep an eye on it - I didn't check through all of the relevant code to make sure that change was actually safe, so if you see weird stuff happening later on, keep this in mind as a possible cause.
I didn't think the game would be good at automatically moving text to a new line.
There is a control code for forcing a line break, but the game also automatically wraps text within the dialogue windows (not the menu windows, though). As long as you're not using a language that loves stringing really long words together (*cough*Latin*cough*), the existing line wrapping should be just fine.
[H]ow did you make the new logo? I'm mostly curious in regards to font and such.
The logo was pretty annoying to create, but I blame most of that on yy-chr obstinately refusing to maintain palette indices during copy/paste. For the font, basically I just started with the existing logo, kept the letters I could reuse, created the missing letters based on the existing letters (e.g. the new "m" is just the old "n" with a copy of the curvy part of the "n" pasted beside itself), and then started squishing letters horizontally until they fit in the available screen and CHR space (e.g. the old "D" was 16 pixels wide, but the new "D" is only 10 pixels wide, and the bottom half of the two "L"s are actually the same tile drawn twice). Glad you liked it!
I'd love to be able to be able to restore the original logo in there, but I read an old post by Psyklax about just how unfeasible it would be.
The English logo uses all the tiles from $74 to $A8 (or up to $AC if you cannibalize the spackled background, or $AE if you also ditch the borders), the rest of that CHR bank appears to be in use for other things, and it looks like the Japanese logo uses a lot of tiles (112), so it probably would take a fair bit of work to transplant the Japanese logo directly. You could maybe try shrinking it, but I'm not sure how far you'd have to go before the entire logo fit.
Edit: If anything, right now I need to find out where the pointers for main text are.
The dialogue pointer system is also explained somewhere in one of the Spanish translation threads; a quick summary is that the pointer table is at 0x8012-0x8037 and each pointer points to a group of 16 strings, where each of the 16 strings is itself terminated by $FC.