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In a nutshell, should I be using Bank Mode for editing only, and play mode for playing?

You can program, save, and name presets in either mode.  I look at Play mode as a 'performance' mode; mainly because of the Flex switch options (p. 35-36 in the UM).  There are other advantages:  Tap Tempo, if you use that; and the tuner.

The tuner there makes sense to me, because I'd tune up to what the PitchFactor wants to 'see' prior to performing -or- programming.  Difficult enough with two feet free.  The output level and level meter might be something you want to check before performing, but also while programming.

Active / Bypass is switchable for one preset in Play mode; two presets in Bank mode.  It seems like Bank mode would be the ticket if you had to switch between presets in a song, or spent the time to draw up a strict sequence (upwards) to match your play list.

Once I integrated the PitchFactor into my MIDI setup, though, the differences between Play and Bank modes melted away.  It all becomes one 'PitchFactor mode' that combines all of the features together.  A two- or three-position Aux switch also has a way of blurring the lines.