That is the only way you should cut plugs for use with nitrous or high boost. That trick is about as old as spark plugs are. It's actually a good idea for any engine.
Matter of fact some new plugs already come cut like that. NipponDensos are one. They do it one step better by making the electrode come to an edged point.
However not gapping like that is not going to be the cause of spark blow out at very low boost. Yes do this to your plugs. No it's not the problem.
