All correct.
To paragraph 1:
CFM engines are operated according N1, so you don't need to switch to N1 government. IAE engines are operated by EPR. If you should loose EPR (i.e. loss of a pressure sensor), you have to revert to N1.
N1 is easier anyway. I still haven't figured out this EPR. Most of the time I watch FF to have an accurate idea about my engines' power output...!
Dani