No, that is not true. Good quality holes smaller than the thickness of the metal can be accomplished by specific cutting conditions. Although I am not familiar with a Bystronic laser, try decreasing the feed rate, power, duty, and frequency. A .406 diameter hole in .500 plate should not require too much adjustment. Smaller holes will require a greater adjustment that results in small bursts, or pulses, that eat away the material slowly without generating too much heat that could deform or melt the affected area. This requires experimenting on a scrap piece of plate. The smaller the hole the more tricky it becomes. However you will reach a limit when piercing the hole interferes with the cut. A water assist option on your laser helps a lot by keeping the heat affected area cool. We have burned .312 and .343 holes in .500 plate successfully, although it is slow. Contacting the manufacturer for some advice or at least a good starting point to work from.