"He is a normal person, and that's good."
Translation:Он нормальный человек, и это хорошо.
No, «этот» tranlsates 'this' when it's modifies some (masculine) noun. «Это» is used as a translation for 'this' when it's used as an independent pronoun, and not a modifier.
When «этот» is used without a noun it modifies, it usually means the noun is implied. Here, it would be understood that «человек» is implied: 'He's a normal person, and this [one/person] is good, [too].'
It doesn't sound natural in this meaning. Also, your sentence sounds sarcastic, because «хорош» about person is usually used in a sarcastic way (to say he's a good person, at least use a long form of adjective, «хороший», but better use «хороший человек» instead).
I would understand «Он нормальный человек. И этот хорош» to mean that they «он» and «этот» did something wrong.
> But isnt хорош the short adjective form for masculine?
Feminine short form, «хороша», is also likely to be understood in a sarcastic way.
Or sometimes it can be used as an actual praise, but not with «этот». For some reason «и этот хорош» sounds sarcastic, I'm not sure why.