No. It would work so that the skills that the bowler is good at would be enhanced (or reduced) to make them reach the skill level that would make the whole team balanced with the on disc original. If they boosted all the stats, the teams would all be full of all rounders.
Yes - because if you've ever played against those people online who use those mega teams of 5 star players and checking the normalise box, it is clearly effective. The difference is that where the teams are normalised against eachother online in career they are normalised against the original on disc team. It's the same mechanism for both though.
It came up mostly in the discussion before patch 1, where it was compared to the original implementation of the career, where you couldn't change skills at all and it was tied directly to the skills of the corresponding position in the roster of the on disc team. This implementation was much better by comparison.
I can only really suggest
starting here and reading 20 pages of discussion of it before the patch. It wasn't discussed in detail from Ross - it was just the quick response to an out of the box problem.
While I'm searching for quotes, to reiterate this one -