Yes! I didn't know this at first either, but it definitely is nice to use to your advantage. If only there was a health meter of your tools to know when they are about to break, but I suppose counting the uses works just the same. Enjoy the new tip!
Absolutely. I've done this many times so I don't have to craft or buy tools. I've customized most of my tools at least 10 times which have probably seen around 250 uses. It definitely helps if you need to complete the customization achievement.