I would say 'yes' as well, but the effect is very limited. I use chisels to inlay everything, and short paring knives to get right to the line, so there is very little compressed wood around my inlays. Yet, when I whisker the wood, I see some swelling taking place, as disturbed wood wants to return to it's former shape. But again, I would not rely on wetting/swelling wood to close gaps. In fact, the Tung Oil I use for finish likely has a more profound effect on thin gaps, filling as the coats are applied.