WhatsApp still uses your contacts as its "friends list", i.e.: people appearing in "new chat". You can still text any number with wa.me links but the UI doesn't offer number input IIRC.
No, you can't initiate a session with someone you know the number of, it demands access to contacts so "you can stay in contact with your friends". The usual weasel words.
It was the case before, but I can do it now. It says "enable contact access to make it easier" but I can also just punch in a number and start chatting... Contact access is off.