I have never used side chain compression in my recordings. There is a danger that if it's not set right, and even if it is, levels can tend to pump as mentioned above. I don't want that in my music.
I normally set up volume envelopes for control of levels but to answer the first question...... NO... I do not pull the backing tracks down at all when I have the vocals in the mix and the singer is singing.
I control the mix by leaving the bass and drums at the same general level throughout the mix..... I will use the volume envelopes to bring the other instruments up and down....in and out of the mix. If I want the singer to shine in a verse,,,,, I simply pull the mix back to bass, drums, and something like an acoustic guitar... as the chorus comes, I might add another instrument or two. Listen to a few of my tunes to see what I mean.
As far as #2... I don't do this type of mixing... narration over a music bed.... but in this instance I can see the usefulness of side chaining. I see this as a see-saw effect.... the voice is given precedence. And any time it is present the music, which is secondary, is turned down so the voice can be heard clearly. Many radio talk shows use this in hardware format so that when the host talks, the callers are reduced in volume.