I have some questions regarding the strategy of the proof of the existence of Hilbert and Quot schemes (I will focus on the latter since it's more general), as in the book Fundamental Algebraic Geometry–Grothendieck's FGA Explained. (I have just a sketch of the related part and not go into the details yet.)
(1) I find the basic setting is restricted to the category ${\rm Sch}^{\rm locnoe}_S$ of locally noetherian schemes over a fixed locally noetherian schemes $S$. I think it first proves representability of the functor $\mathfrak{Q}uot_{E/X/S}$ in this category ${\rm Sch}^{\rm locnoe}_S$, then through Yoneda lemma, we can find a locally noetherian scheme ${\rm Quot}_{E/X/S}$ representing the functor $\mathfrak{Q}uot_{E/X/S}$, then we in particular regard this scheme ${\rm Quot}_{E/X/S}$ as in ${\rm Sch}_S$, the category of all $S$-schemes. Am I correct? (In my opinion, people only want it to be an $S$-scheme a priori; being locally noetherian is an extra property.)
(2) This is more crucial to me. The following picture is from p.110 of the above-mentioned book.
I think, in general, Yoneda embedding doesn't commute with coproducts, i.e., we don't have $h_{\coprod Y_i}\cong\coprod h_{Y_i}$. How can one get a coproduct decomposition of the representative from a coproduct decomposition of the corresponding functor (in our situation, $\mathfrak{Q}uot_{E/X/S}$)?
Thanks in advance for those who answer my doubts!