I've heard that, but I think it depends on the particular engine. Some evidently want more oil around the crank than others. ZX-12R's were particularly sensitve about this, and if you overfilled the oil even slightly the hp took a noticeable hit from the crank drag. Seemed weird to me at the time, but it was confirmed over and over again, and even Kawi blamed that issue on one reason one of the mags got a lower than expected top speed out of the bike.
No idea if overfilling the oil on the ninjette contributes to oil foaming due to the crank being in too much oil.