I don't have any high compliance carts, so I can't give any experiences direct experiences on my Simplex.
Inertia is simply the tendency for an object to remain in its present state of rest (or motion), or to resist changes in state. What I'm understanding Len to mean is: resistance to movement across the LP side is increased when you add damping. This means that the resistance presented by the damping fluid prevents the arm from completely free movement, so it doesn't turn as readily on the pivot point (the golf ball), and there is some drag presented by adding damping.
In the case of my medium compliance DV20XL, I have applied so much antiskate that I have seen the cantilever go off from perfectly perpendicular to the body. The antiskate force acts in a similar way to inertia, in that there is a lateral force pushing the arm outward toward the armrest (to overcome the tendency or inertia of the arm to "skate" towards the spindle when playing). With inertia, it's the mass of the arm, plus the viscosity of the damping fluid that creates the tendency for the arm to stay in place rather than rotate freely. And the more damping you add, the greater the inertia or drag.
To a high compliance cart (in which the cantilever assembly offers lower resistance to movement), this could mean that in worst case, the stylus may "get ahead" of the arm, as the cantilever is less resistant than the arm/damping fluid to movement, and the cantilever then becomes a pivot point. Here, the stylus would appear noticeably closer to the spindle than the arm and cart body. I would imagine that at the very least, this would not be the ideal conditions for the cantilever suspension to function properly.
I don't know whether this would have audible effects, but it would make it darn hard to align and get azimuth correct if it's bad enough.