fseq files are binary files. they are very efficient and small.
xlights uses fseq files if it it playing your show
FPP uses fseq if it is playing your show.
fseq files do NOT know anything about controllers, models, .etc. It is the fully rendered data of the show. Never give any other person a fseq because it would be useless to them. If you want to share your show send them teh xml file of your sequence. This file has things like "Meteor on on Megatree starting at 5.5 secs", "Butterfly on arches starting at 12.2secs".
you can safely delete your fseq files since they can be recreated. Protect your xml files! This is where all your work goes. Pressing F10 will backup all your xml files to the backup subdirectory in your show folder.