Yes indeed I have.
Leveling is a bit different. Only four levels of each skill, level 1 costs 1 point, 2 costs 2, and so on. So it costs a total of ten points to max a skill. Once you max it, you can evolve it into one of two new forms, usually something like "area vs. more powerful," or "longer vs. more powerful," or whatever.
Yeah, in cutscenes it'll flash up a blue paragon or red renegade trigger-icon. You can decide whether or not to hit it, and if you do you'll make a move that'll help you by interrupting them. What it is depends on the situation, and you can't always tell before you hit it what you'll do.