This is simply not true.
All the NLS I have has 9% ash.
I would encourage you to take a look at this document on fish nutrition by the creator of NLS, http://www.newlife.ipbhost.com/forums/index.php?showtopic=328.
I used to feed my fish a lot of Omega One until I tried NLS on the advice of a fellow aquarist. The change in my fish was visibly noticeable within a couple of weeks.
I am not an expert on fish nutrition but I can tell you that our results have been substantially better with NLS across the all the diverse fish we keep.
I used to feed this to some of my fish. The bright red fish waste was rather interesting.
I looked at my jar of Small Fish Formula and it was 9% ash. (Edit looked like a . but it is 9% I looked it up, lighting is funny in this room)
That article was a very good read even though it is very long it is worth the read to anyone wanting to know about proper nutrition! The video is impressive as well to see the "predators" eating the floating pellets is definitely impressive.
I haven't been feeding exclusively NLS as mix it up with some frozen and a mix I add to it or make into crumble but I will try it on a couple of my tanks and see what happens. I don't doubt NLS but I have never tried it exclusively personally and am interested in seeing what results I can find.
I haven't been feeding the shrimp the red bits just the normal foods the fish have been getting since I have them in a tank with White Clouds now instead of their own tank. I have seen a site pass the Tetra bits off as a special red shrimp food and it was the sites own label but it was obvious what it was.
Thanks for posting that article it was a great read !