The main problems I would have is trusting the plastic line's reliability, the MAF accuracy, and the ablility of the computer to increase fuel flow by up to 50% based on intake temperatures.
The argument that the O2 sensors would play a part in this is inaccurate, since you'd most likely be floored and the entire line and intake air would have to be filled with the N20 from the passenger compartment, by the time the N20 was in full effect, your car would be well on it's way into open loop.
Since this system bases it's function on the computer making changes related to intake temperature, and the SD cars also measure intake temp, they would have the basic part of the system in place.
I don't know how fast it can compensate, or the limits to which it can measure temps. You'll never find a situation in real driving that a car goes from an air temp of 100* to -30* in a split second.
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