I don't think that is true at all. The only problem with high compression motors and nitrous are keeping things together as they are typically already very high strung. Very high cylinder pressure dictates very good components from pistons, rings, head gaskets, head fasteners, etc. Check with one of the many NOS manufacturers for info. A few other things to watch out for is fuel pump capacity and ignition timing which need to be set up specifically for NOS use. One of the quickest way to melt down a motor is to have an inadequate fuel supply.

I have seen NOS on most anything from Bikes, Snowmobiles, Dragsters (High Compression) and even a lawn mower. While I'm not a huge fan of the 'NOS' It does work very well for sleeper and stock applications with massive power gains the 'LAZY' way... And no, that is a fire extinguisher, I swear...