Is this a good battery diagram/battery bank

I agree.
It is good to try and spread the load over the batteries in some form. In the OP's form, if he has a lot of current draw between the batteries and not too thick of wire/buss bar then that wire will heat up and cause resistance.
drawing less than 400 amps and using 1/0...will try to make copper buss bars

 
//content.invisioncic.com/y282845/emoticons/ohsnap.gif.17c4c91be09a7a4a3995fb7145adac39.gif
You always surprise me.

And by alt-, they mean ground, right?
Yes the ALT- is your ground. That is the end point for all power produced by the alt. If the power is provided by the battery, the end point is the NEG- battery post.

 
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