You're correct about the knit even. It does mean to continue in pattern. I just meant it in the generic sense of knitting, not especially knit stitches only. Sorry for that confusion.
As far as the decrease row, I'd take out the purl row and put the decreases on that purl row but it's not likely to be noticeable if you do the decreases across the current knit row. Use the back as a guide.