He was referring to the common misconception that a wet nitrous system will automatically cause fuel puddling in the upper intake. I won't get into that debate right now, but with a plate between the upper and lower, you can't have puddling anyway.
As long as the parts don't break, you're on the right track. With the hydraulic lifters, you won't be able to rev too far past 6000 rpm, so be sure to specify that to the cam company. Basically, you can look at the NMRA Renegade cars as a guideline, only slightly more moderate.
The short runner intake will work with the n2o pretty well. Also, nitrous offers a lot of mid-range torque, so that will make up for the low-mid torque lost with the TFS R.
Isky is a great choice, by the way. I have worked with them before, and they have never steered me wrong. Have them recommend matching valvesprings while you're at it. They make the best valvesprings in the business.
If you need a source for a nitrous plate, let me know. All I need is a gasket as a template.
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Moxie Racing
The Nitrous Oxide Information Site