How to output entries related to a locale, IF a section is targeted to all locales?
Craft always outputs entries in one locale only. If you really want to list all entries in all of their enabled locales you would need to explicitly query for them using the locale parameter and then merge the results.

What probably confuses you is that Craft automatically clones an entry on the first save to all other locales. Try to edit an entry / disable it for one locale only and see the differences on you index pages!

If you really don't get the locale specific content for your different URL formats

example.com
example.com/locale1

there probably goes something wrong with your setup. The first thing I would check is the index.php files (→ Localization guide – Step 5: Set up the files)!