Top is the wiring diagram, which should match the physical unit we can't see. Bottom is the schematic, which is a lot easier to look at to understand the circuit. There's a one-to-one relationship between similarly marked points, although not all points are labeled on both.
If it's not obvious, R=receiver, M=microphone, Bz=buzzer/ringer. AS = hook switch, contacts closed when off-hook. D = dial switch, and it looks like the microphone spring contacts to the carbon mic are shown on the wiring diagram (the M's in the D area). I'd say isolating the dialer is non-trivial from the mechanical and wiring point of view.