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I can only provide a partial answer: Many of the characters used in the names of non-Han ethnic groups were originally derogatory. After the founding of the PRC, the government conceptualized New China as a 多民族国家, and they changed many of the characters that were perceived as derogatory. I don't know if this process started under the 国民党, as you suggest, ...

Your question is totally wrong on itself! “犭”（反犬旁/犬部） is a radical of Chinese Characters (Han-Zi,汉字) which is only for forming/making up some single Chinese Characters. In the creating era aka ancient times, people used “犭”(a radical, the variant of 犬 i.e. dogs) to make some Characters which is with some relation to beast such as ...

You're right, 時間 would be awkward... that's literally the noun "time", like "do you have any time?". That seems awkward in English too to get such a tattoo. Maybe you'd prefer something more poetic? Like... 永恆 yong3 heng2 = eternity Or maybe even get an idiom... those are usually pretty: 萬古千秋 wan4 gu3 qian1 qiu = For all eternity

If you are asking about China only, then it is Simplified Chinese(SC). All of main-land China us SC, except Hong Kong, which use Traditional Chinese(TC). Taiwan (if you consider it part of China now) also use TC. 2011 Population (Worldbank.org): China 1344M HK 7M Taiwan 23M

The answer is probably you'd better prepare 2 versions of translation for the game menus/buttons to better sell your game. However, either Simplified Chinese or Traditional Chinese is OK, since most of the case you could use a locale converter such as AppLocale under windows to convert different encodes. But if the game cannot use such tools, better prepare ...