barit1,
I agree that pilots understand very well the sequence you've posted.
I also assume pilots understand a couple of other simple things:
1- ATC can make mistakes. Be sure you master the operation of your aircraft and the environment you are flying (terrain, weather, routes, etc...).
2- Other pilots can make mistakes, so if you don't understand the "chat" on the radio (foreign language), double check with ATC if you are doing OK.
We all know cases of controllers saving pilot's a##es and also cases of pilots questioning a controller instruction. And I believe this happens a lot.
IMHO, we don't see more midair collisions because of good controllers catching pilot's mistakes and good pilots catching controllers mistakes. When none of this works, we have TCAS. Now, when we have ATC mistakes, poor aircraft operation and poor environment awarness all together, then luck comes in. Good luck, and you are home thinking how close that one was. Bad luck, if you are home thinking that all those people maybe wouldn't have died if you had "read" the book or learned that "international sh#t"...