1. Sorry bro, thats just a framing mechanism
2.Don't think so
3. The modern world is before the sea of black tears.
4. Chances are there is not going to be a Brütal legend 2 because the double fine team is not very big on sequels, if anything they would have pyschonauts 2 before Brütal legend 2
5. It takes doublefine about 7 years to make a game, so I wouldn't get your hopes up too soon