Here is what the article says (from the link you provided):
"Nitrogen molecules have a more difficult time escaping through the microscopic spaces that exist between a tire's rubber molecules. Nitrogen is a "slow" inactive gas labeled as an inert gas due to its nonreactive nature with many materials. Oxygen on the other hand is a "fast" active gas that reacts with many materials called "oxidation." Additionally nitrogen is a dry gas that doesn't support moisture while oxygen combined with hydrogen makes water (H2O)."
I was skeptical also, but I have found the above to be true, and my tires stay inflated to proper pressure much longer with nitrogen. I noticed this after buying my last set of tires at Costco, where they use nitrogen at no extra charge (they don't even ask if you want it).
I have a very accurate tire gauge that can read pressure to within one tenth PSI (I would not recommend this gauge to others, because there are less expensive digital gauges just as accurate):
http://www.accutiregauge.com/racing-gauge/accutire-ms-5510b-racing-tire-pressure-gauge/