I read it right the first time. If the ability provides 30 LoS in every sector that isn't attached, then that doesn't qualify as "needing line of sight". Areas that aren't revealed become revealed, without any units around.
Meanwhile SCAS, P-47s, Hawkers, all provide no vision and only target units you can already see. Seems pretty easy to differentiate what needs vision and doesn't.
This is how it works. I just tested it on Steppes. On a large map like that one, you can have units far enough away from the control point to not have LOS, then you would need either another unit to give LOS or something like Artillery Flares. On most 2v2's, the sectors are small enough that most everything in the sector gets spotted by the ability itself.
I don't know if the shell intensity increases over time, but the ability definitely doesn't start instantly. The map flashes, it gives a warning, then the shells start coming in.
In terms of destructive power, Close the Pocket is the strongest in the game, as it will wipe multiple buildings, squads, and vehicles for 200 muni's. Even so, it is okay because its really hard to plan for the ability and execute it, unlike a one-click dive bomb.