That would be correct. It would center the cutting path along the edges of the part. It also would not add a lead in to the tool path as well.
You can but with a caveat. For an example, if you wanted a square with a circle and want the inside circle to use an online and the outside to use the male, you would set up the part layout how you want, but skip the Arrange-Make path so that you still have them seperate. This way when you apply a tool path it will only do it to the feature you want instead of both. I would select the circle, then machine-Create tool path-Online. Then the square but selecting the male instead.
Yes if doing this to art work you are making a lot of work for yourself. You can simplify this process, before you Make Path, go to Edit > Select by > Open Objects; this will select all of your single cut lines, go to Arrange > Make Path. Go back to Edit > Invert Selection, this should select all your fully defined male and female parts, go to Arrange > Make Path and create your Male Tool Path. Click on one of the single cut lines and this should select them all, create Online Tool Path. Go to Layout > Sequence by List and set your online tool path to the top of the list. Alternatively you could select your male tool path and go to Arrange > Order > Send to Front, whatever is set to front will cut out last.
