I think one of your main ideas is somewhat on track, but IMHO it's just a little bit off. Think of it this way: instead of musicality being technique, think of technique as being the system through which musicality might be displayed. The best example is Gyorgy Cziffra, without a doubt one of the greatest "technicians" ever. He became rather irritated when one of his close musician friends admired his technique in conversation. "What you call technique," Cziffra said, "I call a means of expression." I take that to mean that because he had an unstoppable technique that knew no boundaries, anything and everything Cziffra imagined--musically--could be achieved. As a result, because there was absolutely no technical barrier, Cziffra could play what he wanted to play how he wanted to play it. Nothing got in his way. With that in mind, you can take it or leave it; like Cziffra, or not. I happen to love his work. I think most of it is great genius which many people tend to criticise because, for some reason, it seems a little "too exciting" to be proper "Classical" music. In any event, I've also taken those words to heart. There's certainly nothing wrong with an average techique if you possess a great sense of musicality (and I would certainly take that over the stereotypical pyrotechnician with no musicality at all), but I think that technical mastery can open up an unlimited number of doors for pianists--it's just how they use it from that point on. Anyway, that might be somewhat tangential to the original post, but I think it's at least relevant to your first question.
Technicality is playing the piece exactly as it's written on the score. However, if you play it this way without musicality, it will usually sound very robotic and dull. Musicality is going beyond the notes and playing what sounds good. If you ever listen to midi files that were created by entering the notes in 1 by 1, they usually sound very poor compared to the ones that are a recording of a performance, even though the notes are "technically" correct.