Your intuition on the first statement is correct, but why 'intuition'? If a color is absent at both $x$ and $y$ you can use it to color $xy$ and get a $\Delta$-coloring of $G$. This is logic.
Now note that in $G-xy$ the degreesum of $x$ and $y$ is exactly $\Delta$, i.e. the number of colors. If no color is absent, every color is used exactly once.