Despite the fact that you're referring to a singular person, yes, the custom is always to maintain the same grammatical pluralization you would if you were using "they"/"them"/"their" in the more conventional sense. The SE phrasing, "Apparently, they prefer to keep an air of mystery about them", is therefore grammatical (including the last bit, for that matter), and the alternative is wrong enough in all cases that just about any native speaker would immediately notice and be jarred by it.
The only way to use singular verbs in such a case is to switch to a different pronoun. Using "it" to refer to people is extremely dehumanizing, so that leaves only two choices:
- the awkwardly slashed "s/he" and similar (including "he or she", hat tip Steve Jessop in comments)
- new words like "zhe", "ze", "zie", "zir", "hir", and so forth, which are relatively unfamiliar and confusing to anyone outside certain circles. (Especially because of the ridiculous number of ideas people have had for such new words.)
Usually, it's not worth the hassle. Just use "they"/"them"/"their" with plural verbs. No sane person will get offended, there's no grammatical problem, and stylistically the plural pronouns are arguably the least annoying in most cases.
You could say either "life" or "lives," but I take them to have different meanings.
The ranch workers were destined to live a horrible life, for they were haunted by loneliness.
In this sentence, I would assume that the loneliness the ranch workers were haunted by is a result of their being ranch workers. Because they are all doing the same thing and lonely for the same reason, they have a horrible life and not lives because there is little separating the individual ranch workers. Metaphorically, they are all living the same life.
The ranch workers were destined to live horrible lives, for they were haunted by loneliness.
I would interpret this to mean that each of the ranch workers was lonely, but that they were not necessarily lonely for the same reason (i.e. because they are ranch workers). Unlike in the above sentence, they are not (metaphorically) living the same life.
I didn't find it particularly easy to articulate that, so if it could be clearer please let me know.
I think context plays a large part in interpreting these sorts of sentences, and even then some sentences may sound nonsensical.
All the people in the audience raised their hands.
We all know that hand-raising usually involves raising only one hand, and we can safely assume that everyone in the audience has at least one hand, so it's clear to the reader that the audience members are individually raising a hand.
In other situations, it may be best to rewrite the sentence. I'm shamelessly stealing this example from EL&U:
Corporations may not have a conscience, but they do have PR departments.
Corporations may not have consciences, but they do have PR departments.
Corporations may not have a conscience, but they do have a PR department.
Which of these is correct? Definitely not the third one (which states that all corporations have a single lack of conscience and a single PR department), and while the the second one is more favourable than the first, these sentences could be rewritten into an unambiguous form:
A corporation may not have a conscience, but it does have a PR department.
Here we run into some other difficulty. Your sentence isn't as simple as this one, mostly because you're using the definite article. You could say:
The ranch workers were each destined to live a horrible life, for they were haunted by loneliness.
By using each, the sentence now refers to the ranch workers individually and separately, so using the singular is unambiguous.
Best Answer
tl;dr: There does not seem to be a general rule for whether a plural or singular is used in a "They wrote in their diary/diaries" type situation but in general the plural seems to be preferred. There are also times when one or the other is strictly necessary.
From what I gather the answer to this question is very far from straightforward. I would recommend reading the language log posts by Mark Lieberman here and here. For the sake of having a less comprehensive but somewhat shorter exposition the rest of this post will mostly be an attempt at a summary.
In the posts Mark looks at a very similar sentence "Ostriches [...] bury their head in the sand" and asks whether this is the correct usage. To him this suggests that the ostriches have one collective head they bury (maybe a shrunk lions head talisman or the Head Ostrich).
Research then shows and I quote:
He further elaborates on this in the next post looking at a rule proposed by judge Posner regarding when the plural and when the singular form is used again I'm quoting, this time judge Posner:
Mark concludes that this rule doesn't hold water, at least in the categorical sense though he points out he doesn't have the evidence to conclude anything about statistics.
I finish with one more quote from Mark
I will point out that this is written from a descriptivist point of view. That is Mark Lieberman is a descriptivist and so when confronted with a question about a point of grammar he attempts to use research on how english is used to determine the answer.