Hi Wahl! Thrilled you want to run it.
Just a quick note: be kind to the game :) I develop it for my group, and we are an odd bunch. And please let me know how you'll manage, would be really insightful.
About your questions:
1) This is a good point that I should expand in a future version. In our beta-testing game I, as a wordsmith, adjusted the difficult before, as written in the rules, and I still think the Wordsmith should make things clear before the word choice.
Still, the possibility to alter things at the end can add a bit of thrill that certain players enjoy, as happens during my game. So, it depends on your grour group, but I suggest to stick to the rules. (Note to self: correct the example and add a section "how to manage players who like risky games")
2) I checked the italian version (the first i wrote) and this is a player's choice. In the english version is the example described in 5.3, so this should be a word that is connected (even in a "stretched" way) to the original one. The Wordsmith has the final word in this case, too.