Seriously, it's odd that nitrogen in air has negative effects given our tens of millions of years evolving to cope well with the atmosphere pretty-much-as-it-is-now. I wonder if this is due to N2 itself, or to small amounts of NOx? Or even contamination of the experimenters' N2 source with small amounts of ammonia?)
Nitrogen narcosis is not very well understood. The prevailing wisdom is that, at high partial pressures of N2 (and many other gasses, but notably not helium) the structure of the lipid bilayers in cells is subtly altered such that the transmission of action potentials by neurons is impaired. Another factor may be that the natural production of nitric oxide by our neurons (by nitric oxide synthase) is increased by the increased [N2]. At any rate, it's the increased partial pressure of nitrogen that causes this.
At pressure, your blood absorbs nitrogen from normal air mix. Release it too fast, and it bubbles like a soda being opened too fast. This causes immense pain and or death if not treated immediately.
This is correct, but unrelated to the narcotic effect of nitrogen. Nitrogen solubility obviously changes with pressure, so more nitrogen goes into solution at high pressures (e.g. when scuba diving), and if that pressure is suddenly reduced (e.g. due to a rapid ascent), it will come out of solution forming bubbles, causing decompression sickness (a.k.a. "the bends").
But the final sentence of the abstract suggests the effect persists even in ambient air (~80% N2 and ~20% at 1 atmosphere total). What's the mechanism for that? Still some amount of N2 absorption by the blood reducing O2 absorption?
Nitrogen does not affect the ability of hemoglobin to bind oxygen (that I know of). The narcotic effect is due to changes in lipid chemistry and/or production of NO by NOS.
I think what it means is that oxygen is more readily taken into the body from heliox than from air and you could adjust the oxygen mixture down a bit then it would be the same. Or add a little oxygen to air and see the same thing.
We don't absorb oxygen from heliox any differently than we do from nitrox, or trimix or other gas mixtures. Divers who will be operating at extreme depths use heliox for two reasons: firstly, to replace the nitrogen with helium, and thereby avoid the narcotic effects of breathing high partial pressures of nitrogen, and secondly to reduce the total concentration of oxygen, because breathing high partial pressures of oxygen causes oxygen toxicity. (The 80% nitrogen ~20% oxygen 'normox' we're breathing right now is effectively 400% nitrogen and 100% oxygen at 50m (the limit for recreational diving), and the partial pressure of oxygen reaches toxic levels at about 70m. So technical/commercial divers working at depth breath a mixture with a much lower percentage of oxygen, so that the partial pressure of O2 at depth is not toxic). They still have to deal with the helium dissolved in their blood/tissues after a dive, and therefore go through lengthy decompression protocols.
It's a little funny to me because we don't see a big cognitive difference between people who live where I live (Colorado) and people who live at sea level where the air is 20% higher.
Altitude acclimation depends largely on the production of 2,3,bisphosphoglycerate, which, counter-intuitively
reduces hemoglobins affinity for oxygen; this makes it a more efficient oxygen transporter by increasing the proportion of oxygen it delivers to our tissues under conditions of low partial pressure of O2. It usually takes about a week of living at lower ppO2 to build up enough 2,3,BPG to adjust. This is why lots of athletes will train at altitude, because the 2,3,BPG they build up will last a couple of weeks once they return to normal altitude. (Others just cheat and inject themselves with 2,3,BPG).