Correct. He doesn't kill Leia. For one, because he's dead roughly 10 mins. after he learns of her existence. And two because she shows almost no Force potential at that time.
Correct. Luke isn't killed. But when it comes down to it, Luke's just Luke, an individual strong in the Force, but hardly a true Jedi.
I'm proposing the prophesy describes destruction of the institutions of the Jedi and Sith, not every Force-user. I feel my ramblings are still valid.