Can someone correct my understanding?

Also provides the driver to the hardware. The result is that you get a device to which only a single application can connect. Example "Card 0"
Also provides the ability to define multiple 'virtual' devices via the .asoundrc which attach to the card via dmix (Example vcard0, vcard1, vcard2)
Each application needs to communicate with it's own individual VCard.
Pulse creates a single interface (PVcard0) to which all applications can connect. It does it's own mixing, sample rate conversion, and sends it to Alsa's "Card 0"

Is this correct?

F