Yes. Although if you are lame like me you put as few things in those slots as possible because I am always accidentley hitting the rotate button.
As I said above the Knights are great for practicing against and farming their equipment. What you do with levels depends on your play style. I usually go all out for endurance early because it helps you get that extra swing or two in and also helps you roll out of the way when you need it. Dex or strength depends on your weapon choice.