LF: We see it in this week’s Parshah. A N’giyus Badavar can take down even the Gedolei HaDor (see the Zohar as to why the Meraglim wanted the Jews to stay in the Midbar). That’s an extreme case, but N’giyus exists everywhere in life. There is a Gemara in Bava Metzia with a list of Amoraim who wouldn’t be a Dayan for anyone who had ever done them a favor. I’m not going to be one to come out and try to find which Psakim (if any) of which contemporary Poskim come from any sort of N’giyus, but it certainly exists somewhere. To be human is to have biases. That’s how we were created. One of the challenges of life is to ignore those biases when the time comes up.
In regards to your second point, he was just quoting from someone who had a strong Mesorah in Europe and never heard the phrase used in that context.