Forst, you should have gloss coated your model before applying decals. Next, seal the decals, either with gloss or flat. Weather the model with paints...washes and drybrushing. Seal this with dullcoat. NO, tiy can use pastels.
You need to have a glossy surface for your decals to lay down flat and not end up with silvering, where air pockets are trapped between the clear carrier film and the almost microscopically uneven surfac of flat paint. You need to seal the decals to portect them from wear and tear and to get them to have the same reflectance as teh rest of the model, so they don't LOOK like decals. A gloss seal will help a wash run along panel lines, but I have found this to not always be necessary, though it's not a bad idea.