Yes, in the story it went slightly differently than it occurs in Merchant of Venice. Hermione waited until after the flesh had been torn from Harry to tell the underworld spirit that it had violated the deal and then negotiated back the restoration of everything as an appropriate penalty for it violating the deal.
I would think using magic you actually could extract a pound of just flesh...
Yes, in the story it went slightly differently than it occurs in Merchant of Venice. Hermione waited until after the flesh had been torn from Harry to tell the underworld spirit that it had violated the deal and then negotiated back the restoration of everything as an appropriate penalty for it violating the deal.