Yes, pure lead is very soft. It is also very maleable, and that is why I use it for hollow point bullets in .38 Special, .357 Magnum, and now in 45 ACP and Colt.
I use my own formula for bullet lube, which I have posted here before. It is a mixture of about 60% bees wax and 40% petroleum jelly (Vaseline) and a very small amount of STP, which is the old Saeco Green bullet lube formula if you add a little green color (a crayon works well for this, but I don't bother with that). I will re-post how I make it if anyone is interested.
No, I don't get any leading, even though the bullets are soft. I size them at .452" (which is the largest size that will still allow the loaded cartridge to chamber easily; I don't care about the bore size

. My bullet lube is also very soft (even somewhat sticky), but it does an excellent job of keeping the bore lubed.
I do occasionally get leading with harder bullets and hard commercial bullet lube, but the old trick of a few strands of copper Chore Boy wrapped around an old bore brush cleans it right out. I have a Lewis lead remover, but never use it. The Chore Boy method is much quicker and easier.