Yes, but...

Absolutely. In order for the juicer to detect a short there must first be a short. When the short occurs there is arcing if only for a very brief moment. The question is not IF there is arcing but rather HOW MUCH arcing is there and how much damage does it do to wheels and track in normal operation. With the vast number of juicers in operation there must not be so great of an effect that people are concerned about it.

Power the frogs from switch machine contacts and never run against the switch - problem solved. 

It should be noted that when oxidation on track was viewed under very high power magnification it was evident wheels do in fact arc to track. The deposits left behind by arcing were like little tiny dots on the track rather than a contiguous line as one would expect from the oxidation layer itself.

"so great of an effect that people are concerned about it"?

   It might depend on the wheels on the specific loco, I've had poor quality wheels that were more susceptible to pitting than other wheels so perhaps a frog juicer could damage them more? ..........DaveBranum

More current

There is more current in the brief short than the motor normally draws, but I can't imagine the difference is enough to matter. I suspect the pitting damage is related to arc duration as well as arc current, and we are talking nanoseconds here.

pqe