Although some parts of this question are a bit perplexing and probably (forgive me if I am wrong) a sign of limited experience with Tridion, the question itself is very clear: is it possible to localize entire folders or groups of structures or even publications? Answer: yes, it is possible, but only through the API. The GUI allows you to localize all items in a specific folder or group of structures, but it will not localize items deeper in the / SG folder hierarchy. You will need to write code that achieves this, perhaps through a basic service (which is a WCF web service) or perhaps with a GUI extension.
On the one hand: when you do this, you need to decide what exactly you want to achieve. For example: what types of items inside a folder do you want to localize? My hunch is that these are only components, but maybe you want to localize (sub) folders and other types of elements as well.
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