I'd be watching everything and going above and beyond any prep work they recommend... The bamboo shouldn't compress the balsa since the carbon/glass lug will lock the bamboo from moving into the balsa.
The lack of proper sealing of the bamboo in their method is a real concern to me.
If you want to seal any of the bamboo, make sure it's the inside of the seat tube. Water getting down in there and sitting on that balsa is a recipe for rot in a high stress area.
Not sure what glue is being recommended for tacking but do yourself a favor and use proper glue.
You may also run into clearance trouble depending on your front 'belt ring' size.