Yeah, it's going to be an expensive one, I'm afraid. At this point the plan is to go B&W for the interior.
I think our layout is going to be a little different from the usual, based on experimenting we've been doing, but the basic plan is to have each monster be its own 1 (or more) page. However, Michelle has also been working on consolidating entries, as one way to do this while still saving some space (similar to the way the MM has the oozes all as one entry, for example).
I honestly don't know the answer on the racial traits question (though it sounds like a good idea). The last I actually did work on the project myself, before handing it off to Michelle, was more than a year ago...