Nitrogen is a large molecule which takes a lot longer to permeate through the walls of a tire than smaller molecules like oxygen. So pure nitrogen will retain a constant pressure longer.
Also pure N2 in a tire will mean 0% water vapor. Oxygen and water vapor can internally corrode and degrade the tires and wheels, shortening their life.
The greatest threats to tire life are heat and uneven tread wear, which are both results from improper tire pressure. So keeping your tire filled with N2 instead of normal air will keep a more constant pressure, which keeps them lasting longer, and also maintains a low rolling resistance to the ground translating to better MPG's.
BUT... With all that said, I wouldn't pay too much extra on it. They offered it to me in a bundle along with window etching which is also complete bullcrap. They ended up giving it to me for free because their fleet manager didn't want to sell a car without those options.
I mean, the Insight already has a tire pressure monitoring system, so having a car beeping at you should be good enough for you to get the hint to air up the tires.
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