It depends somewhat on how they do it. If they used a different neck set to get the strings higher off the fingerboard with a 'normal' low Flamenco bridge that could be helpful. It would give you more dynamic range, if nothing else. If they did it by putting in a taller saddle you could be asking for trouble. Flamencos typically have a very thin top, and the low string height at the bridge reduces the torque on it. Raising the strings off the top could easily over load it in the long run, leading to faster bellying, and increased risk of the bridge flying off and killing the cat.
Higher action does, of course, make rapid playing more difficult.
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