The device is a depletion-mode JFET and has a pinch-off voltage of around -3 to -4 V that Vgs has to stay above to operate. As long as Vds is above Vgs - Vpinch it will be operating as an AC amplifier.The first part of your sentence is correct, but are you sure about the second part?
The guitar pickup waveform is AC +/- in reference to ground. If we are talking about the same JFET circuit it is a single supply circuit which requires its input to always be above ground? Or have I missed something?
I too think that it should be coupled through a capacitor in case of a DC bias...