Correct, an action with a "delayed execution" doesn't stop the execution of the rest of the rule it just delays that specific action. If you want to have the rule execution "pause" for a period of time you need to use "delay actions".
All "Waits," including "Wait for events: elapsed time," are cancelled if the rule re-triggers. I've started to use these in most cases over delays because it's almost always what I want, whereas delays must be explicitly cancelled (with the most common method being to mark them as "cancelable" and use a "Cancel Delayed Actions" somewhere else in the rule). Otherwise, they are quite similar to a standalone "Delay" action--which, as discovered above, is different from the delay option you can use on an action. A delay on an action schedules that particular action for the specified time in the future, then continues on with the next action instead of waiting there.