It represents the Jedi Temple Guard, and those who wield it are seen as highly skilled and dedicated to the Jedi Order. In some cases, Jedi who wielded a yellow lightsaber were former Temple Guards themselves.
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Because he died happy. He returned to light when he wasn't sure if it was possible he could - and he was able to give the girl he wanted to love his life (force). She in return was able to gave him a kiss, because she could finally accept him. Ultimately it was more than he was expecting.
Since the game itself is canon, fans have to speculate on Cal Kestis' canon lightsaber color — but by all accounts, the answer is blue. The cut scenes and promotional materials show him with a blue lightsaber, as does other merchandise, like the Black Series action figures.