Not necessarily because Bludgeon's been on Earth (hence the Earthen tank mode) -- and they acquired all of Earth's languages via the World Wide Web, so he would have knowledge of Kanji. Perhaps he found feudal Japanese culture to his liking (compatible with his own 'culture' of Metallikato) and adapted it - much like how Jazz adapted African-American pop culture.
If it were pre-Earth Bludgeon, then yeah, Kanji would make no sense. Or you could have a nobori with
Decepticon letters.
In theory perhaps, but in reality the toy would suck cos the Pretender Shell would have to have a simplified transformation (cos the core needs to a hollow casing) - and the inside figure would have to be smaller and simpler too. But they could probably make a decent smaller version of the Wreckage mould easily enough (perhaps in Scout or Legends size) -- but yeah, the shell would be compromised.
Ah well, we can dream. (^_^)