I can't remember if I've already said this, or if it was in one of the articles, but [as we all know] the Blu-Ray discs are 50gb - which means there's more than enough space for your average game...in numerous languages. So yes, you'll probably get subtitles, and you're likely to get the game in English, on the same disc.
They are doing the region free thing as a measure to counter piracy. The #1 reason people "modded" their consoles was to play imported games, and it had the side effect of being able to play burned games. They hope to avoid that.
I personally don't see what's wrong with modding your console to play an import say, if it came out half a year earlier in another country, or was native to only one territory.