Not sure what you mean by 'created in the view', but I would skip xforms and use other built-in properties.
User profile is not culture specific (like news / article pages for example), so you don't need to use [CultureSpecific] attribute on properties.

What do you mean by 'localized country list in the form' ?

By 'created in the view' I mean defining the form such as

<form action="#" id="edit-profile-form">
            <label for="firstname">Firstname:</label>
            <input type="text" name="firstname" id="firstname" />
            <br />
            <label for="lastname">Lastname:</label>
            <input type="text" name="lastname" id="lastname" />
            <br />
            <label for="email">Email:</label>
            <input type="text" name="email" id="email" />
            <br />
            <input type="submit"/>
</form

Now in the above form I have dropdown list for the country. How can I load different values in the list based on the language user is browsing the site in.

You could use resource files / xml files / hard-coded dictionary that contains localized country names.
On form submit, you only need to send the country code which you'll save in EPi.