Just had to say, nice clear explanation Jase.
I do use inserts for things like valve-pres and I would use them for an outboard Compressor too (if I had one
).
But....
I think you can send a signal at 100% through the sends bus though. To mimick this in Cubase place an effect on a channel pre-fader, then turn the fader completely down untill you hear nothing - from here turn the send up (with the fader still down) - the signal is completely wet.
You are studying about this stuff at school Jase, and I'm no expert, but it really does sound the same on my desk. There isn't any dry signal in the mix at all if I run pre-fader (with the slider down) and the send knob at full.
I mainly was using inserts, because I need free sends busses on my desk.