Not true.
A more correct statement would be, that a steering stabilizer should not be used as a band-aid to cover up worn or improperly designed steering components.
My WJ OTK setup is dialed in and performs flawlessly on the road and off, but a stabilizer is a nice addition to soften the jolt transmitted to the steering wheel when traveling off-road on rubble strewn, rutted or washboard tracks for long distances.
The FOX ATS and Teraflex Falcon units are definitely high end and spendy, but the ability to tune them is nice and the pass-thru design eliminates the mild steering pull that is typically associated with a gas charged unit. I scored a smokin deal on a low-mile Fox ATS unit a few weeks ago that had been run on a JK, before the owner move up to 1-tons, 40's and hydro assist.