That is correct: There have been documented cases where a website has slowed down or gone offline altogether because of the huge influx of traffic generated by being Slashdotted. But, on the other hand, if you can keep your site running through the Digg phase and the slashdotting phase your site could come out smelling like roses.
This is because over the course of those couple days when everyone is reading about your site, they are also blogging about it and linking to it.
Consider this Digg/Slashdot tactic as the most extreme form of link baiting. Instead of getting a few dozen sites to link to you for something you wrote you could have a few hundred or thousand sites link to you over the course of a few days. And you thought promoting your technology site would be difficult.
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