Noalox is a pain on the threads, it was a mistake to put it on one of my GGTS's, so never put it on threads. However it does a good job on parts that press against each other constantly. And as denali said it is used for high current applications. Anyway you can put a dab on the firing pin, but you have to know what you are doing. A little bit more and it will cause problems. So I am not advising it anymore to people although the very experienced ones can use it to their advantage. One of the important things it does is that it prevents arcing between parts. In case of GGTS since the firing pin is not pointed it doesn't really need Noalox, but only some cleaning from time to time.
The thing about noalox is yes the paste is an isolator, but the tiny zinc dust in it is conductive. To benefit from conductivity of zinc dust, a lot of dust has to be compressed between 2 parts which are not perfectly smooth. too much noalox will be overkill because again it is an isolating paste.