My comments (full disclosure: I work in the game industry):
Crunch Time:
This will very much depend on your company. If you're a tiny company, in a dreaded dependency to a more powerful publisher/investor/etc, you'll see more of it. If you work in certain larger companies, also. If you're an indie developer, you'll practically live it, but it'll be your own choice at least. If you work for a "nice" company, then steps will be made to avoid it.
As podcat says, crunch is the result of failed planning and overzealous outside circumstances. If you/your publisher/your investor allow leeway, then you might not see that much crunch. If you have a proper and experienced Agile team (google agile software development, or scrum) then you're doing the right steps to eliminate crunch.
Proper planning, realistic and flexible goals will eliminate crunch, and there is no reason you should need to put in 12h+ workdays for weeks.
Being/Becoming a Game Designer:
As podcat says, for non-large game companies, you probably won't be hired as a junior game designer. Only the really large publishers/developers even have open junior game designer positions. Typical entry positions are QA, where you can "climb up the ladder" by doing game design-related work, producer-related work, or similar stuff (while still doing a 120% perfect QA job!) and someone will notice and put you on other projects.
If you want to be a game designer, learn something that will help you. You need to understand incentives (this is a must, so learn economics), you need to be able to script/program a bit (learn Python, or some other language you will use during your QA/other work), you need to be able to set up models (learn maths/economics), be able to adapt them quickly to changing game requirements (learn scripting/Excel/theoretical thinking). I've seen game designers applying for a job not knowing how to use Excel, and not understanding basic incentive theory. We laugh at these people*.
Salaries:
The games industry pays below-market wages -- compared to what you would get in the non-games industry. It is what it is, and you need to know it, because it won't change soon. As ForzaA says, great work atmosphere and generally a fun place to be make up for it, for most.
Expect to work for slave wages, especially if you are a Junior Game Designer, Junior/Intermediate QA, and anything related to CRM/support (no matter the seniority). There are thousands of people wanting to enter the games industry, and these are the typical entry positions of people who do not have "proper" game industry skills (programming and/or art). This constant influx of cheap labour keeps wages low, low, low.
Concerning salaries, it depends on the company and your position. Junior positions pay considerably less than Intermediate positions. I have no idea about artist salaries, so I won't speak about them. QA/CRM/support will sometimes get less than 1000€/month -- before taxes. Junior game designers at our company probably 1000€ after taxes. Programmers get significantly more, especially if they're good/have the skills the company needs currently.
Salaries of 40.000€/year+ (before taxes) are definitely intermediate "high-pay" positions (programmers, well-experienced and fantastic producers), or senior other positions. Forget 40k+ if you're in CRM/support.
I hope that helps, and does not intimidate you too much
* Note, there is a difference between game designers and content designers. Game designers do the rules, the models, the game. Content designers provide the text to fill the quests. They are more artists than designers. They do not need to understand incentives (it still helps). They still need to be able to work with Excel.