In short, air is hydroscopic, oxygen promotes oxidation, and nitrogen is inert. We want no water, no oxidation, and nothing but consistent pressure independent of temperature inside any shock.
That said, the ACME valve stack is pretty straight forward and the whole package is plenty stout for the task. It can handle air, and if someone tells you they can the difference in performance with their ACMEs between air and nitrogen, they are lying.
And, yes, I have GEN3s on my lightweight Cub. Contrary to what is said by those who dont-need-busheels-and-neither-do-you crowd, these shocks are the bees knees. I also have the Stinger, and it too is worth the price of admission.