Yes I have heard of the reasons you listed. Yep I have used Batik wide backings and the needle size of the longarm made the "waste" fabric unusable. (Sometimes they run the pattern over the edges of the actual quilt onto just the batting and backing) These had holes so large the waste backing could never be used for anything else. This is because of the higher thread count and tight weave of the batik. So ... to make a long story short it did wash and 'wear" fine but.... I would be very cautious of using the very high thread count sheets. Particullary of you make an error the holes made from the original stitching will be noticable. Most recomendations for needles for machine quilting are to use a top stitch needle ... this is quite a large needle and would make sizable holes in a high thread count sheet. I look for a thread count of no more than 250 per inch and no less than 200 if using a sheet and it is fine. It depends also the needle size you use. Sometimes on a batik or other fabrics I lower my needle size .. yes even when I am quilting all the layers. As a general note it is a good idea to use the smallest size needle possible for finely woven goods even when piecing, and a new needle .. so as not to "pull"a thread.
I have been using sheets since the 70's when the only wide choice there was ... was muslin. Not all my quilts have sheets for backs but a great many do. All have held up well.