Regarding your first question, yes. There may be other ways to see this, but that one is obvious. Your second question is one of hierarchy. From a practical standpoint, if the main effect is "involved" in a significant interaction but is not significant itself, the advice is often to include the main effect. This will have a resultant impact on the delta between the R-square and R-square adjusted (as the model will appear over-specified), but it may make sense as you may have to manipulate the insignificant main effect to take advantage of the interaction. To reduce models you use:
- subject matter knowledge,
- R-square-R-square adjusted delta (over-specification),
- p-values (significance),
- RMSE (usefulness of the model),
- residual plots (testing assumptions),
- others (dependent on the situation)
Regarding statistical significance from the ANOVA perspective. The F-test is a comparison of The MS of the effect of each term in the model with an estimate of the random errors (MSerror). How you estimate the MSerror is an important decision. If your estimate of the random errors is small compared to the actual variance in the process, then statistically significant effects may have little to no effect in reality. Analytically speaking, you want the estimates of random errors in your experiment to be representative of the true variation in the system in the future. This can be challenging to accomplish as typically experiments have restricted inference space (they are done over a short period of time on a relatively small scale). You may have to exaggerate the effects of noise during the experiment to represent future conditions appropriately. If you have not devoted much planning to identifying and understanding noise in the system, you are left with running randomized replicates to get un-biased estimates of that variation. In un-replicated designs, you are typically using higher order terms to estimate the MSerror (although I prefer Daniel's advice for analysis of un-replicated designs to prevent the MSerror bias). If you have identified the noise, there are many options to help increase the inference space the design precision simultaneously (e.g., repeats, blocks, split-plots)
"All models are wrong, some are useful" G.E.P. Box