I am guessing you are in USA? I don’t have any experience of the products linked, but they are most probably similar to products like Autoglym in UK. I was talking about cleaning products, but Autoglym is batched up with a protector too. As I said before, the Z4 roof is waterproof, canvas fabric bonded on to a rubber substrate. It won’t leak unless it has a hole in it. Adding a fabric protector will help the water “bead” off, and will possibly deter algae growth for the same reason, but it won’t stop leaks.
Where the duct tape is you should sit in the car while someone runs a hose vertically above that area, then you can see whether water is coming through the roof or around it.
The worn area does look very worn, but the rubber substrate looks intact. It looks almost as if the roof was originally black and has been dyed/bleached which may have weakened the weave. If this was in UK I would be looking to replace it with a second hand roof which are readily available (although not in your colour) for about £200-300.