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How much does it really cost to hire 2 competent translators to work on a translation for 2 months?

Maybe 100-150k?

I don't understand why Japanese companies just don't do that and release the game on the eShop only if they are nervous about inventory/shipping/manufacturing costs for the Western markets.

Even on the low end, I think a game like Bravely Default could scoop up 100,000 downloads in sales at a budget price of $30 a pop in US/Canada/UK, that's $3 million in revenue, assuming they spent $300k on the translation, and licensing royalties to Nintendo of $500k, that's still $2.2 million in profit for S-E. 

Why not?