I, too was sceptical about the entire idea. I was still curious about it, so I did a lot of searches and found LOTS of people using this tecnique with great results. The trend started in europe, and there are lots of people with long term proof that back up the process. The bottom line is that any product that becomes inert after a chemical reaction is simply inert! The only problems that are identified are the physical degredation that it undergoes over a period of time. Basically, the stuff erodes microscopicaly and passes harmlessly through the system and is trapped by sponges, etc. for export.
I, for one, think that if I have to redo the foam wall every few years, it is worth every second of my time. I also had my new tank fitted with twin overflows; lest a big chunk is somehow ripped off the wall and creates a blockage. The cured and painted foam is quite hard, though.
I would also love to hear what Randy has to say about the subject. Rich.