We usually fly A/T all the way to touchdown in the MD11, but you're hands on from 10K to touchdown. Never forget who's flying the airplane.
Bingo. I've got lots of time on 73NG's and have never seen that malfunction, however, there's always a first time, which is why my hands stay on during auto-lands.
Also, during visuals we are supposed to leave the A/T's on, but you can punch the speed button as technique to give you floor protection and still have the A/T's in case you need to go around.