Tommy was the Original Broadway Cast Recording - so yes, it means it was a studio recording of the cast singing "live." That's the way 99% of all Bway recordings are done.
George Martin has hosted a few shows aimed towards children on the Ovation network - a 3-part series called The Rhythm of Life. The first part was
rhythm, followed by
melody, and then
harmony. I saw part 3. Maybe it was for kids, but I absolutely loved it. Great insight from George Martin (I had no idea one of John's favorite classical artists was Ravel) and great interviews with other artists. Unfortunately it doesn't look like it's playing again anytime soon.