You can absolutely use that Z axis as a floating head for a plasma cutter, no brake function is needed.
However, do not underestimate the challenges involved in setting up THC wih Mach 3, especially when trying to do so with cheep USB controllers. There is an issue with the THC feedback process when using most USB controllers. As such, you may want to look at a standalone Torch Height Controller like the Proma THC150SD or a machine controller with built-in THC, like some offers from MASSO, though the latter can get rather pricey.
Speaking from very long, expensive and painful experience here.
Some old steppers lose their magnetism after a while. But some don't, check to see if they can overpower your pinch strength. If so, then they should be just fine for moving a plasma torch.