Yes
No.
MIDI is not audio. MIDI is a control signal.
Think of it like a page of sheet music - it's not sound, it's a series of instructions for what sounds to make and when.
You send that signal to another device (or piece of software) that actually makes the sounds, like a pianist sitting at a piano reading the sheet music. The sound comes from the piano, not from the sheet music.
It gets confusing when the audio player (the synthesiser or sampler) is built into the same program as the MIDI recorder/sequencer, but they are two separate functions.
You can send a MIDI stream straight into a synth and get sound out in real time, or record the MIDI stream into a sequencer, or both. Once it's recorded, you can edit it on screen to fix up errors or just to make it different - like word processing. You can assign the notes to a different playback sound on your player device. Etc.