I hard-blocked my Shelby block in my race car up to the water pump holes. This is the block where I spread the bore spacing and broke into the water jacket towards the bottom on three of the cylinders during the boring operation. I ran for a couple years without hard block, relying on sealer against the press-in steel sleeves to seal the engine, but it never lasted all that long. Eventually I hard-blocked it, and it hasn't leaked since. So, I would say that based on my experience anyway, the hard block will provide a seal.
In terms of honing, I would say that again based on my own experience, you may have to hone the engine, run it for a while, hone it again on the next tear down, run it again for a while, and hone it one more time to get a truly stable cylinder wall. That may be due to the nature of the aluminum block, but I have heard that from others running cast iron blocks as well.