Correct. If the existing plaster is chipping away you will need to fix that area. It's also a pretty safe bet that if it's happening at one area, there are other areas as well. Of course a spot treatment might be possible. A lot of factors involved with the finish alone.
Regarding the order... I'd address the finish first since that has to be done while the pool is drained. You can further drain it and look into cleaning it but that all might be a waste of time if a complete refinish is needed. Items like plumbing, electrical can only be checked and tested so much without water in the pool. I'd personally contact a local pool builder or company that works with remodels. Get some quotes an compare.
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