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1) White balance should be

1) White balance should be applied before interpolation (half and bilinear demosaics could handle non-balanced data, but others are not).
2) I could not understand this step:
"Multiply each pixel by its bayer filter colour times 2 for green and times 4 for red/blue"
Is it 'poor man approximate white balance'? If so, WB values should be adjusted to 0.5/0.25 :)

3) rgb_cam is 'camera to sRGB' matrix. If your output space is not sRGB, color profile matrix (rgb_cam) should be adjusted to output space (see convert_to_rgb() source for an example)

-- Alex Tutubalin