I would suggest you determine for yourself whether the N gauge electrofrog point functions adequately as supplied, by a practical trial. The design is functionally the same as the OO electrofrog; whichever closure rail is in contact with the stock rail supplies current to the live crossing (frog), so the movement of the closure rails acts as the switch for the correct supply to the crossing.
The insulfrog design limitation became very apparent on adoption of DCC, the two insulfrog points on my existing layout quickly showed evidence of shorts leading to spark erosion of the diverging rail heads at the crossing: out they came, replaced by electrofrog equivalents, trouble eliminated.
Peco find themselves between a rock and a hard place in designing OO points because there is no accepted wheel standard, so what is (and in the past has been) supplied in RTR and kit OO models varies from a decent approximation to RP25 profile which will work reliably, to 'it's a wheel'. I imagine from my limited past experience that much the same is true of RTR N...
Actually as supplied it's functionally an 'insulfrog', but with an isolated (your 'properly cut') metal crossing (frog) instead of a plastic moulding ( perhaps better named as 'insul/electrofrog?'). But as has become apparent, Peco's 'Unifrog' design, which attempts to keep the unpowered crossing as short as possible, is as intolerant of the range of OO wheelsets that are 'out there' as the 'insulfrog' design was.
The insulfrog design limitation became very apparent on adoption of DCC, the two insulfrog points on my existing layout quickly showed evidence of shorts leading to spark erosion of the diverging rail heads at the crossing: out they came, replaced by electrofrog equivalents, trouble eliminated.
Peco find themselves between a rock and a hard place in designing OO points because there is no accepted wheel standard, so what is (and in the past has been) supplied in RTR and kit OO models varies from a decent approximation to RP25 profile which will work reliably, to 'it's a wheel'. I imagine from my limited past experience that much the same is true of RTR N...