Again, that article doesn't back up that claim that the secure element usage on the phone is dead, in fact, it reaffirms the fact that it is still used:
.. Which makes perfect sense, as this is how the NFC chip is used in conjunction with Wallet, and further explains why even the new version of Wallet still does not work for those who have borked Wallet in the past by not resetting from within the app before performing a factory reset. Just saying I think you, understandably, misunderstood the information. While specific credit/debit card information storage has been changed to be done via Google's severs only, the app itself still uses the secure element component of the NFC chip to identify itself and store that information. Again, just ask anyone who previously borked the old version of Wallet, and the recently updated version still will not function as it needs to access that secure element which is, as we've said, borked still.
So I still strongly recommend anyone performing a factory reset first open Wallet and Reset it from within the app to remove that information from the secure element. At the end of the day, this takes about 5 seconds.. and I'd rather people perform a 5 second procedure than suffer the consequence of not being able to use Wallet on this phone again because they were that lazy or misinformed