My Dad agrees with you on both points. He says when he was going home and away following the Baggies that rivalries only mattered when the teams actually played each other. There wasn't a 'lol you lost to Palace last weekend' when going into work, laughing at each others misfortune or seething at their success. But obviously when it was head to head there was still bragging rights.
Although whether his apathy towards rival teams success was somewhat fueled by him having access to a t-shirt press in the late 70s/early 80s during Villas peak and him making a mint outside of Villa Park selling shirts with the League Table printed on the day they won the league. That was the day he found out that the League Table is actually copyrighted material and you can't print it without a license.