Yep, absolutely true.
"dry deck" is where you plug the coolant passages to the head.
If the engine you are using won't take the pressure of a racing engine and runs the risk of lifting the head, dry decking will avoid coolant into the engine. If this is the case then that engine may be a poor choice for Bonneville.
Eliminating the coolant from the head makes the head hotter (Duh!) For anyone unfamiliar with the term BMEP it means Brake Mean Effective Pressure. "The average (mean) pressure which, if imposed on the pistons uniformly from the top to the bottom of each power stroke, would produce the measured (brake) power output." If we try to compare a 1 liter engine to a 2 liter engine the only way to do that is through BMEP. How big is the explosion? If we calculate the average pressure that results from the ignition of the fuel mixture, BMEP results.
BMEP also tells us how the intake, exhaust, timing, etc is working.
In a perfect engine we would insulate everything. The internal combustion engine is a heat engine. The heat of expansion is what pushes the piston. We throw lots of heat away by cooling the engine. In a production car that's necessary to get longevity. In a race car it is only needed to avoid melting. Dry decking puts more heat into the engine and can produce more horsepower.
Run it until it melts, and then back off a little!