Yes to your last question - 2 iterations = 2 runs as you illustrated.
When I say 'walk', I simply mean the tool can 'drill down' from the root location to load from subdirectories -- probably you're already aware of this option and all this means is if you have a root for a county already set up for input raster datasets, but they're grouped into subfolders by sections of some sort, the 'from workspace' tool has a box to check on (include Sub-directories), and simply goes through each contained subfolder from the root to 'collect' the datasets and load them all. Very convenient.
I discovered why I have 2 params showing up in batch mode instead of the 3 I was aiming for - the param I attempted to set is 'derived' -- I'll attach another pic to show you what I should have done. And from this point, if at least the batch mode is proven adequate (I think so), then I guess you'll want to work on the 'inline text sub'. Not sure if this'll work in ModelBuilder in the way you intend, but there's always a workaround!
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