Damage Scaling

I see that if i get some crit chance/damage from gears/tree skill's dps increases, is it the actual dps i'm dealing or it shows the dps if i eventually land a crit hit?

I didnt go high crit chance, i'm sitting at about 25% on lunar assault but i understand that shred generates a lot of fragments so it could effective anyway even with low crit chance.
If that's the case should i spec into raw damage instead of crit and ignore dps tooltip?

the dps number is an average number based on attack speed, inputs to the base damage number, crit chance, crit bonus, etc. so if you increase your crit chance you should see the dps number go up.