Is there any truth to something like this?

Technically yes they work, but not that well. They trick the PCM into thinking the intake air is coolder than it is and advances the timing. You can do the same thing by simply advancing your timing via the dizzy.
 
^^^Pretty Much

This thing makes the computer think the ACT is cooler than it really is...
In extreme high temps this could cause detonation, as the computer would not be pulling timing the way it should.

I would stay away from it...
jason