Why wouldnt it? Haki doesnt negate power, and people are really blurring the lines on observation haki and what it is or how it works (do not use luffy as an example he has the voice of all things and feels others emotions THESE ARE DIFFERENT TRAITS)
What is haki then? How can haki users cut logia then? I'm confused.
If I get the invicible fruit, I'll use it in this way -
Person who doesn't have CoO, cannot see me completely. For them I do not exist if I don't get caught making a sound or something like this. But I won't get caught in their sight.
But then CoO users can sniff me out in no time.
However that would depend on the mastery level. Like the CoO has to be a tier more than my DF mastery to sniff me out. Or else the fruit would be of no use if any beginner level CoO can catch my movements.
That's what I had planned. But it's ok if the Mods do not approve. I would just think of a different fruit. It's a big sea....