You can solve many, perhaps most terascale problems on a standard computer with big enough hard drives using the old memory efficient tools like sed, awk, tr, od, cut, sort & etc. A9's recommendation engine used to be a pile of shell scripts on log files that ran on someone's desktop...
For anything more complicated you can also get very far with simple python programs that read one line at a time and output some transformation of it (which might include turning one line into many to be piped into sort etc)
1) Assuming there is no joins/merges requirement, read in chunks and output GB dumps.
2) If joins/merges are required, use external merge sort.
Is this correct? Actually I'm wondering whether I could earn some bread and butter by focusing on the big data processing problems (e.g. sort/filter Terabytes+ dumps, do transformation for each line for Terabytes+ dumps, those kind of things) without actually knowing how to implement math algorithms (required for data science).
If so what kind of tools I need to master? I'm thinking about basic *nix tools like mentioned above, and also Python and maybe some compiled language for optimization (someone managed to speed up a Python external merge algorithm on 500GB file by 50% by implementing in Go), then maybe some easy algorithms (merge join, heap, etc.)