Yes to both. This is a setting we use as a learning tool only in the MvM games and some of the single player levels. You can see all planets and ships, including the enemy's. Even cloaked ships. And they can see yours.
We've found it helpful to new players to be able to see everything the other players and mentor are doing. But in other games on the site this will not be the case. You won't have info on enemy stuff until you find it.
Show Media Item - Yes to both. This is a setting we use as a learning tool...