I don't know all the technical details but basically the above sounds correct. Before carrier toll circuits were rare.
There are two excellent books I strongly recommend which go into detail about this stuff (and where my questions arise from): They are:
"A History of engineering and science in the Bell System" / prepared by members of the technical staff, Bell Telephone Laboratories
vol 1. The early years (1875-1925) vol 3. Switching technology (1925-1975)
Vol 1 covers the early toll circuits, instruments, and switching up to panel and would answer the questions above. Vol 3 covers later switching--#1, #4, #5 crossbar and ESS.
(Vol 2 covers military products).
I also recommend two books on IBM technical history: "IBM's Early Computers" by Bashe et al and "IBM's System/360 and System/370" by Pugh et al.
I will note all the books are technical/research histories and tend not to cover manufacturing, marketing, or financial issues.