>>Do these still work?

Yup.

>>And if so could they possibly be added to the treasure system? I see kirmhiro draught all the time(well not all the time), not really sure why these have to be so rare..

Totally wouldn't mind seeing it, but I doubt it. They have always been very rare festival/auction items, and the only other way to get them has been things like the bootlegger's crate from the original Prison Quest.