1) Yes
2) It matters if you have two animals and only room for two. In that case you can't breed a third and convert it to food. And if you convert during the feeding phase that precedes breeding, you end up with only one animal and it does not breed. So in that case it's a choice of two animals, or one animal and food.
If you have three or more animals, you can always eat at least one and have it replaced during breeding.
2) It matters if you have two animals and only room for two. In that case you can't breed a third and convert it to food. And if you convert during the feeding phase that precedes breeding, you end up with only one animal and it does not breed. So in that case it's a choice of two animals, or one animal and food.
If you have three or more animals, you can always eat at least one and have it replaced during breeding.