73sport, you are almost perfect with your explanation. The only exception I have with it is where the igniter gets its signal from. The igniter gets its signal from the ECM, not the ignition pickup coil. The ECM gets a signal from the distributor's signal rotor (Toyota calls it a crankshaft position sensor, but it is technically a camshaft position sensor). The ECM determines the optimum spark timing relative to the camshaft position, based on temperature, load, etc. The ECM sends the signal to the igniter to momentarily shut down the flow of battery current to the primary coil. This sudden stopage of current collaspes the magnetic field between the primary & secondary coils, and generates a need to dissipate the charge from the secodary coil's development of high voltage - which is discharged as a high voltage current flow across the spark plug gap.
And yes, igniters can and do go bad. Often (but not always) one can tell an igniter is going bad from an erratic tachometer reading, as the tachometer gets its signal from the igniter on Toyota engines.