Looking at this from the standpoint of what is most likely to leak out, the lower a element is on the Periodic Table the more likely it is to squeeze out of an inflated tire. That's why Hydrogen, which is #1 and helium, #2 leaks out of balloon's much faster than air does.
The Periodic Table lists Nitrogen as #7 on the periodic table.
Oxygen is #8
Argon is #18
Air is composed of about 78 percent nitrogen, 21 percent oxygen and 1 percent Argon. There are traces of other things in air but these are the biggies and the other things have bigger molecules so they are even less likely to leak.
Based on this information, they are filling your tire with the element most likely to leak out and charging you money for the privilege.
Of the three main ingredients in air, Oxygen is the most likely to cause a problem because it can combine with other elements so easily.
The synthetic rubber your tires and inner tubes are made of is quite resistant to Oxygen so IMO having 20 percent of the air in a tire is not a big issue.