No - it creates a vacuum which will suck everything out, not just air. Drain the system as best as you can, use the Uview to create a vacuum (no air or coolant) and then use the vacuum created to refill the system with properly mixed coolant from a bucket.
Pedro has good directions on how to use it here:
Flush Coolant System
Or you can follow the instructions that came with the tool.
Replacing the water pump is your call. It might last another few years, or it might fail tomorrow, as could the new one you buy. I changed mine (MY99, 78K) because of all the dire doom and gloom warnings. I found the old one I removed was in perfect condition and did not need to be replaced, but I guess that's better than waiting for it to fail. I dunno. I tend to think there have been a lot of perfectly good water pumps replaced and thrown out because of a few documented failures. Just like IMS bearings.
If you're going to replace the water pump, might as well do the thermostat. I wouldn't bother with the coolant tank until it actually fails.