No. It's optimized for gaming, with bundled software and configuration aimed towards improving your gaming experience, but you can do the same as you would on Bluefin and regular Silverblue/Kinoite.
Correct. You can still write code, browse the web, create documents etc. but you may need to install additional software (like LibreOffice if you wish to create docs).
Bazzite has what you need for gaming and regular usage, but does not restrict you from installing something else to adapt it to your needs.