Yes, it does. Later on when you get better you will the reason for different timings for different stuff, but for now, just get it along the way. Also remember to DRONE. It's better to lose because you made too many drones than because you made too little.
You have massive build order flaws; one base banelings? 12 gas/pool? I suggest you to watch some of day9's newbie tuesday episodes and the like.
Poor engagement; losing all your infestors unnecessarily. Poor macro. Poor drone amount. Really you have so many flaws that it's best for you to just watch day9 and keep practicing and getting better. If you have trouble, go to teamliquid.
Yes, all official Diablo books have been stated to be canonical by Blizzard. They are pretty interesting because they tell stories long before the events in Diablo and Diablo II, at least in the first books and then they present the events that happened in the games, but in a more story-like way. As for the last book, Moon of the Spider, I read somewhere that it tells about things that happened after Diablo II (but I didn't read it yet ).
Anyway, if you're a big fan of the lore, read them, you'll enjoy it. And they aren't expensive anyway, I got the Sin War trilogy for 16 euros or something and the following 4 in a compilation called Diablo Archive and the Moon of the Serpent (separate) for about 18 euros in total from bookdepository.co.uk (they have free shipping ).