I am trying to find out if it is possible to edit a file in a single sed command without manually streaming the edited content into a new file and
Note that on OS X you might get strange errors like "invalid command code" or other strange errors when running this command. To fix this issue try
sed -i '' -e "s/STRING_TO_REPLACE/STRING_TO_REPLACE_IT/g"
This is because on the OSX version of sed, the -i option expects an extension argument so your command is actually parsed as the extension argument and the file path is interpreted as the command code. Source: https://stackoverflow.com/a/19457213