Yes, it can be if left on too long. I've used that method a couple of times. You limit the exposure to just a couple of minutes, which is long enough to remove the outer layer of paint. You immediately neutralize it with water after it really starts to bubble. It is exceedingly difficult to get the oven cleaner method to pull overpaint without harming the original paint underneath. It's possible to get it right, but you really need to know what you're dealing with and how long to leave the oven cleaner on. If you go too long and you'll strip to bare metal. If you miss some in cleanup, then the part will rust quickly.
My experience is as follows:
Easiest: water-based, latex paint (you should be so lucky that it's this)- cleans up with a light scouring pad/sponge and lots of water
Annoying/Messy: oil-based house paint, regular spray paint. Sometimes acetone, sometimes Goof Off. Paint thinner usually not strong enough. Xylol/stripper may work too. Watch out for very old, white paint- could be lead based.
Hard: Acetone-based auto paint. Often melts/binds with the original paint. Acetone will clean it, but it's really a tough clean up.
Awful: undercarriage paint/POR-15/etc. Really awful. Lots of acetone needed (LOTS). Oven cleaner may work, but it's a real gamble on exposure time.
To be honest, I hate paint removal. It's messy and involves some pretty foul chemicals.