Do these tools work well when people are editing content and config from the site vs developers adding features/content by version control? It's this tension that has caused me some grief when working on legacy Wordpress sites
Yes. The content in the database remains the same. Developers can continue creating themes and plugins as they normally would.
Sometimes 'development' isn't as clear cut and that and does involve creating content to drives a custom plugin that's in development. I dream of a day when PHP moves from a database to a file structure of plaintext documents that can be merged and diffed, instead of to another database, and maybe even uses git to commit changes. But it's a pretty wild dream, and it's probably better to just use a different platform for new projects, and just wear the pain for the legacy projects.