Yes, WENV is better, it helps a little, but it's not a miracle...
Even with WENV it will require a lot of work to make the script and it can be slow.
Your approach is to build a menu.lst. Mine is "on-the-fly" or "real-time-translator".
Each one has pro's and con's.
Yes, mounting of a .iso as loopback device would really help. I hope Chenall will implement it in the near future...