No, it doesn't come anywhere close to the privacy or security provided by AOSP.
You could be dividing up your projects into highly sandboxed environments on Android too. It has support for running multiple hardware accelerated virtual machines running desktop Linux and it wouldn't be that hard to support creating those with NixOS and other distributions instead of only the standard the Debian images provided by Android. That will happen as it gets more mature.
See the explanation at https://news.ycombinator.com/item?id=49364220 for why desktop Linux is nowhere close to AOSP for privacy and security. If you want more details, there's a lot of deeper coverage.
Yes, it does, at least for my threat model. AOSP (with Google Play Services, which are needed to do much useful) mean that a whole lot of closed source system binaries are running with full access to all my data and constantly phoning home to Google.