They should be arguing about the lack of harmonic dampening with the UR pulley rather than arguing that the
internally balanced SR20DE is put out of balance because of an external component like a flywheel or a pulley.
The latter is flat out wrong. I'd argue that UR pulleys won't hurt low power setups, but when you start building an engine to insane power levels like 400 and beyond, you would want to eliminate any potential problems by running a harmonic damper (i.e. stock or ATI). The more power, the worse an out of whack harmonic frequency would be on the rotating assembly.
However, most SR modders aren't running that much more power than what a stock DET produces. There has not been one case of crank bending/rod bending because of the lack of harmonic dampening the UR crank pulley provides. I'd say that it could aggravate an existing issue, but not altogether completely cause it. It's a relatively safe mod. I guess the next thing to start keyboard jockeying about is eliminating the use of turbos, as they put more wear on the bearings and rods and ring lands?
Please understand the difference between internal and external balancing. It's another thing that makes our engines great.