You understand correctly. Yes, if there's a choice, I will use a keyword to get into the category.
I'm in a different genre to you, but the same thing applies.
I write 'mystery, thriller and suspense' which usually crosses genres. On the dashboard, I usually choose two broader 'main categories' and keyword into the smaller sub cats.
I've had more success finding my readers that way.
It's not a once and done event for me either. We have the freedom to change them at will, so I set aside time to revisit my keywords every month.
Don't be afraid to play with them. You can always change them back.
EDITED TO ADD: Don't forget, you can also ask Amazon to add you to other categories. I believe the maximum, including your two dashboard choices, is ten.