That's probable, as the limiting factor is still the transducer. The XTZ earphone, which uses advanced Dirac DSP technology, manages to improve dramatically when the DSP is in effect, but the earphone still exhibits "defects" in its electroacoustic response, such as ringing, less than ideal impulse response, etc. Subjectively, I've heard that XTZ is not especially good to listen to, even when it has the Dirac DSP turned on.
Of course, this means that the paired drivers in this NSS project need to be of relatively good quality, e.g. RE-400 quality. Issues such as FR linearity and transient ringing can probably be minimized through corrective tubing and chamber design. For example, Etymotic uses a specially-designed side branch which functions as a specific Helmholtz resonator to smooth out peaks and improve midrange/treble linearity through its band-pass effect. That's why they diagram the chamber as an RLC filter.
I haven't actually had much time to study the NSS project in depth, but I do think it has promise, at least from my relatively cursory glances at the details.