1. Is it still to salty...should I replace the juice again.
Salt content is definitely one of two major factors (temperature being the other) that determines how quickly it ferments. Diluting the brine might be a good way of getting it to go faster. But
if you just let it go, it will eventually reach a good sourness, and the saltiness will become less and less pronounced...unless it just has way too much salt.
2. Should I be concerned about Botulism...I fear it may not be getting much O2.
Short answer: No. When you went to mix up the kraut you had a lot of oxygen dissolved in the brine, and you had the oxygen in whatever head space you had above the level of the brine. And if you can smell the kraut, you have oxygen exchange going on.
The lactic acid bacteria has started doing it's work, acidifying (even if not much) the ferment. That along with the salt content and the initial oxygen you had makes this a hostile environment to Clostridium botulinum
Botulism is really only a concern with the more modern technique of canning, which is extremely new in the history of preserving food. When you can food the heating process drives off all
the oxygen and kills off all
the competing bacteria. This absolutely sterile (except for C. botulinum
which can endure extreme temperatures), oxygen-free environment is what makes for botulism.
Your ferment is far from sterile, as it should be, and far from truly