Kevin,
Yes, you have it correct how the lines were originally routed. I doubt that it really makes much difference which line goes to the front or rear brakes but that is how they were originally. The line that used to go to the proportioning valve is now connected to your distribution block.
What are the coils for? I don't really know but they look sort of nice.
There were never any 'official' repair parts for the proportioning valves and years ago there weren't any new valves either. So someone has re-worked your system by eliminating the valve altogether. I suppose no proportioning valve is better than no brakes. You can now buy a non-Ford valve that is not original but probably works better than the original ones.
The original valves look similar on the outside but there are at least 3 variations of them and the innards are different sizes. The common Scott Drake repair kit only works for ONE of those variations. I know, I bought their kit and it didn't work on my late '66 valve which surprised not only me

but Scott Drake as well. They thought there were only 2 variations, early and 'late' for which their kit supposedly works. But my valve was apparently 'too late' and their kit didn't fit it.