that will bring down the price of btc's in Yen, won't solve the USD price from being high (unless it is somehow possible to convert dollars to yen at gox).
You can buy from someone in USD using EUR.
So you are saying I can convert euros to usd in mtgox? I highly doubt that is a standard practice to be honest.
Maybe people with huge accounts can ask for special service.
Maybe you meant that BTC connects all currencies in gox, but that still doesn't change anything.
Yes they convert currency for 2.5% fee. If I send Canadian dollar without a Canadian account they will convert to USD.