That doesn't sound right to me. I would think that the tracking wouldn't need to change that much for such a small size increase. Generally, unless I move from text size to headline/subhead size, I do not decrease the tracking at all.
However, below 8pt, I usually add a little, to open it up a bit.
Yes, but: 1) Minus 25 seems like too much. 2) If you're using InDesign you might as well turn on its optical spacing (at least for "non-intended" sizes), which is nicely size-aware.