The real issue that brought all this to the surface in the first place is... moisture. Race teams would buy tanks of "dry nitrogen" to inflate tires because it was cheap and portable. The tanks were easier to move around, load and unload from a transport than an air compressor.
Before this, there were many scientific uses for nitrogen that required it be dry. So, production volumes were high and the cost of nitrogen was cheap.
In a race car, the tires can easily exceed 212*F, so any moisture or water that is inside is going to boil which affects the tire pressure. Moisture in compressed air comes from the atmosphere, as well as from improperly maintained equipment (there are water traps and filters that need to be changed once in a while).
If you used properly dried compressed air, most of the benefits of dry nitrogen would be just as evident. Face it, compressed air is already 78% nitrogen. Any internal degradation from the 20% oxygen would be minimal in the life of the tire.