I agree with everything except #1: You may have meant voltage instead of power. ESC should always be rated 25%+ higher than the max current the motor will draw, at its max operating voltage
Power measured in Watts. ESCs are rated in Amps while motors are rated in Watts. To compare a 35 Amp ESC to a 300 Watt motor we need to know the Volts that we will be running and convert the ESC rating into Watts.
Example #1: A 35 Amp rated ESC, a 300 Watt motor and a 11.1 volt battery.
35 Amps * 11.1 volt = 388.5 Watt rated ESC
388.5 Watt rated ESC is greater than the 300 Watt rating for the motor so the motor will fail first.
Example #2: A 35 Amp rated ESC, a 600 Watt motor and a 11.1 volt battery.
35 Amps * 11.1 volt = 388.5 Watt rated ESC
388.5 Watt rated ESC is less than the 600 Watt rating for the motor so the ESC will throttle down or fail first saving the motor regardless how large a prop we install. If we want to ensure motor destruction we can't have this situation.
The main point being that the ESC needs to be sized larger than the motor so that the ESC does not shut down due to thermal protection or over Amp safety measures built into the ESC. If the ESC shuts down before we reach the power level required to burn out the motor the ESC could save both the ESC and motor from damage. If the ESC lacks thermal protection or over Amp protection, as some do, it could simply fail before providing the power needed to damage the motor.