Nickel is an extemely hard substance. It is used as a wear prevenitive. The lubricating capacity of nickel is not good though. Ideally they should be using a teflon impregnated nickel. Best of both worlds. It gives the surface hardness to prevent wear and the lubrication of teflon.
That's not a bad idea, GM cured a piston knocking on cold start due to piston "slap" on their 7.4L in the mid to late 90's by using a teflon coated piston skirt. If it will hold up to that, it should work well in this application I would think.
FSM