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.ai in Illustrator is the same as .psd in Photoshop. This will allow you to open the file again in Illustrator and make changes to your original design and all layers are in tact. If you export or save as another type that's when you lose your layers and the design becomes flattened.
If you want to vectorize or trace an image, the Place option is good for that. You can "place" your original image and then use that as a guide to trace.
If you're looking to type text along a path, draw your path first. For example draw a path with the Pen tool. Then with the Text tool, click right on your path and when you type it will follow your path.
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