Yes, yes, I have heard all this, many times before. I can also quote may divers who have lost their lives on rebreathers. The ratio of rebreather deaths to open circuit scuba deaths has been quoted as about 5 to10 rebreather deaths to every single open circuit scuba death.
Certainly, I have dived with some individuals who have experienced narcosis at 100 feet. In fact, I rescued a buddy diver who was narked out (asleep on the bottom with his eyes open) at the end of a 25 mins deco dive at 140 feet on air.
Consequently, for some people narcosis is a serious problem. However, some individuals can function despite narcosis at considerable depth.
Whether you use a rebreather or open circuit scuba, it is a question of analysis of dive site conditions, individual susceptibility/capability with narcosis, individual perception of risk, good risk assessment to identify and mitigate problems and proper dive planning.
Also, trimix is not easily available all over the world. In some cool remote locations, all you can find is air. Therefore, if you have a rebreather you may have to use air as a diluent.
In conclusion, whether you use a rebreather on trimix or open circuit on air to 160 feet, both approaches present risks. It is your individual choice based on sound risk assessment. To quote Sheck Exley "what works, works".
Let me just briefly quote some famous and highly respected divers on deep air dives.
1947 Frederi Dumas 308 ft
1961 Hal Watts 350 ft
1965 Tom Mount 360 ft
1971 Sheck Exley 466 ft
1993 Bret Gillian 475 ft