re: Poker & Razz strategy
Sure, Razz can be seen as a call and pray game. The best starting hand in the game is only ~3:1 favorite against something like K8_7. But that, to me, is a good thing. It means you get to play more starting hands, because many of them have the pot odds to do so. And unlike NLHE, the value of your hand changes more with every street. So you can often outplay your opponent by adjusting to these changes in value more than he does.
So yes, playing Razz, no one starts with a made hand. Everyone has to draw additional cards to win. This just makes the game different.
In the situation you posed, the way the hand played out on 3rd street will usually tell you how you should proceed. But against a random hand, you're typically a 60/40ish dog in this spot with poor implied odds (your opponent will typically know when you're ahead, and you won't know if he has you beaten). I probably take 1 more card off, but folding isn't a huge sin if the pot is small.