Yes, NFC the technology works. However, certain applications, like Google Wallet can be problematic and require workarounds (not because of technology itself though)

I know that low key defeats the purpose of a privacy oriented android build but yeah

Not everyone using a custom ROM is doing it for privacy reasons. I see privacy as a perk but I mainly use custom ROMs to keep my devices around longer and to get new features.

Even for those who are concerned about privacy, I don't think NFC is that big of a security hole. I know some people who turn it on only when they're using it, but that's pretty painless.

afaik it should. but why do you think NFC defeats privacy? it is quite short range, isn't it? having google services is much worse