I am sure it can-I've heard about it.
We are all talking about an integra type-r engine here aren't we? Let's keep in mind there's already a bit put into it:
"ok i just put a 04 type r engine in with a full high compression valve train and JE forged pistons. my compression ratio is 11.2:1 with a double layer mugen gasget...."
I am only thinking pure HP/$ in this situation. Why would you think about lowering the compression on an already built engine ($2500), then spend more money on turbo (at LEAST $3,000). Given, turbo will yield more HP/TQ if done up more than 8 PSI, but that's money (maybe $2,000 more).
My statement that all motor ITR's are better than an 8 PSI is, of course my opinion. That's something you will have to decide-it's what you want for your car.
In any other situation, it might be argumenative whether an 8 PSI ITR would get an ITR with $4k in it, but not this one. There is already pistons and valvetrain (say $2500 in). $4k more could easily get sleeving and a stroker kit to 2.0/2.2. With that, there is no way the 230 HP from an 8 PSI ITR could get a stroked, HC ITR.
Also keep in mind-after you lower CR, turbo, get all the management needed, you still need it perfectly tuned. VTEC and turbo is great, but does damage if not done just right.
Again, think where you want to be in the end. All motor or turbo is your choice. If you decide to stay with turbo, go ahead and lower CR and get set up for it. If you want all motor, add a little more to it.
Unless you want more than 350 HP, I would recommend staying all motor. That's the best deal for you HP/$. If you want to squeeze more than 350 HP, definately start setting up for your turbo now-but don't stop at 8 PSI.
Jake