Yes, that is correct. When I started the game, I had no idea that localization might be down the road. Any new game I would definitely keep that in mind and encapsulate all the dialogue properly so it can be isolated in a language file.
For it to work, the text has to be the same as what appears in the text box; code like `text { } text`, `<text|text>`, among others, ends up causing problems, requiring it to be written out in writing, or using a file to force the text change.
exp: ser", "<I'm the best dancer on the Ship!|I even practiced with BB-2!>"
\/
# game
old "\"I'm the best dancer on the Ship!\""
new ""
# game
old "\"I even practiced with BB-2!\""
new ""