master public key (MPK) creates a watch only wallet meaning you won't be able to spend the coins. You will need a working backup of the seeded wallet or a copy of the seed to be able to restore a full wallet.
Correct, that is the way I had it configured anyway. The primary reason I use Electrum is because of the watch only wallet and offline wallet concept. The lack of necessity to download the blockchain is a close second.
Thanks for your reply though.