Correct way to use a router?

New member here. Looks like a nice place. :)

I've had a home-based network for some time, and recent changes have me re-evaluating it. I think I may have made an incorrect assumption.

Setup: DSL coming into the house. I set up the DSL Router as a bridge so my NetGear WNR3500L router would handle all the heavy lifting. The NetGear has 4 10/100 LAN ports. I also have a separate NetGear Gigabit switch.

Here was my thought process: Since the router's ports were only 10/100, I ignored all but one of them and ran a single ethernet from the WNR3500L to my Gigabit switch, and from there I built out my network. My assumption was that the WNR3500L had ports, not switches and any traffic running through it to other computers in my house could be limited. In my setup, the only traffic running through it would be internet, and all inter-computer traffic would be managed by the gigabit switch.

So my questions:

1. Am I correct, or wrong in so many ways?
2. If I do add some computers to the WNR, and still have some computers connected to the gigabit switch, will they still all be able to talk to one another?
3. What would be your recommendations in making my network better?

Thanks!