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Yes and it works smoothly as long as there is one witness verifying transactions. And we have hundreds of witnesses.

No. Most apps -including Steem clients- are using the same API node to access the blockchain, so it even more centralized than Drive or Amazon S3. There are alternative API endpoints -like the one from Anyx or the one from MinnowSupportProject-, but most developers and extension users are leaving the default value untouched.

EDIT: The API node was incorrectly assigned to MinnowBooster while it was from MinnowSupportProject, as it is listed on the Steem Keychain preferences

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