- First off, why do we call the metric determinant $g$?
Because we define the notation that way.
- Why isn't it true that $g = g_{ab} g^{ab} = 4$? Isn't that how $g$ is defined?
If the determinant of the metric could be written using abstract index notation, without resorting to non-tensorial objects like the Levi-Civita tensor, then it would be an observable quantity that was a property of space at a particular point. There are such quantities: they're measures of curvature or related quantities involving derivatives of the curvature. But the metric itself (as opposed to its derivatives) doesn't let you compute a curvature, and therefore any such quantity that doesn't involve a derivative cannot be an observable.
What this tells you is that the determinant of the metric isn't a property of space, it's a property of the coordinates you've chosen. For example, if you use coordinates in which the basis vectors aren't orthogonal, then the determinant of the metric will be smaller.
- When will it be true that $g = 1$?
Never, in 3+1 dimensions, because $g$ will be negative. If you want to know when $g=-1$, then the answer is whenever you choose coordinates that make that true.