I'm not sure what you mean by this.You omitted the relativity of simultaneity, which is also important. It could be a typo, but from the rest of your statements I believe it is an important omission in your thinking about the subject, an omission which indicates a systematic error in your understanding.
Except for your omission of the important principle of the relativity of simultaneity, I don't have any serious argument with what you are saying, though I'd also point out that Orodruin knows all this already.
However, the "relativity of simultaneity" doesn't seem to fit into your mental "distortion" model very well, and it's an important effect that you seem to be unaware of. Length contraction and time dilation alone are not sufficient to explain special relativity.
If we consider the Lorentz transform in units where c=1
$$x' = \gamma(x - \beta t) \quad t' = \gamma(t - \beta x)$$
See for instance
https://en.wikipedia.org/wiki/Lorentz_transformation, and note that I've set c=1 for ease of exposition. (This can be done easily by using the right units - time in seconds, distance in light seconds, for instance).
When we focus on the second expression, we see that t' depends on both t and x. "Time dilation" explains the gamma factor in the dependence of t' on t, but it does not explain how or why t' depends on x. Length contraction also does not explain why t' depends on x. The thing that explains this mathematical dependence of t' on x is the relativity of simultaneity, and important part of special relativity that should not be ignored.