The oil pressure is raised by increasing spring pressure on the pressure relief valve causing excess oil to dump back to the oil pump inlet at a higher system pressure. It's just a ball on a seat with a spring. It won't reduce oil flow, it will increase it. When the bearings become worn and clearances increase, oil pressure will go down. It's a classic sign of a worn out engine. Increasing the spring pressure will possibly bring the pressure back up, (and maybe make an unwary buyer think the engine is healthier than it is), but the wear is already there and sooner or later the bottom end will let go.
Bill Marvel did a study on this some years back. Might still be out there in googleland. The Lycoming mushroom lifter and hydraulic unit design was lifted from flathead auto engines of the 30s and was never designed to do more than pump itself up for zero lash while operating. Lycoming decided to use the bleed down oil from the hyd unit to feed through hollow pushrods and drilled rockers to lube the rocker and help cool the valve guide. The quantity of this bleed down oil doesn't really seem to be sufficient to do that job so increasing the oil pressure should, in theory, help with that. Another issue is that the cam and crank both get their oil pressure from the oil galley on the right side of the engine making for lower oil pressure on that side. This is a contributing factor to #3 cylinder having more valve guide problems than the others. The barrel lifters they used in the AD engines seem to be better in this regard, though they had a lot of other problems in development which led to some, well, AD notes.
A good question is: do the hydraulic lifter units in the newer roller lifters do a better job of passing oil to the top end? Other than the possibility of blowing up an automotive oil filter (not that likely) I don't see why raising the oil pressure some will do any harm.
Ed