A clarification about Wallet and Addresses (In Armory)
Your understanding is mostly correct, the only thing that is incorrect is that there would be only one transaction that would be sourced with ten different inputs. You only have to input your password, you don't have to manually enter any private keys, unless you are importing new private keys to your wallet.

Since there would only be one transaction that would be accessing all ten addresses for inputs, the ten addresses would be known to be belonging to the same owner.

Also, strictly speaking the BTC aren't "in" the wallet: Rather, the wallet only contains the keys, while the BTC are stored decentrally on the blockchain. The BTC are "in the wallet" only in so far that they can be sent with the keys from the wallet, and that the wallet software keeps an account of what your balance is.

This results in the distinction that you only have to keep safe the keys to protect your spending power, the "history" part of your wallet is only for your information.