It is true that they can breathe air. The common belief that this makes them good for cycling tanks is bunk though. These fish do have gills and are just as succeptable to damage from ammonia and nitrite as any other fish. The labarynth organ is designed for low oxygen environments, not for high pollution. They are as good as a lot fish for fishy cycling (not my method of reccomendation), but are not superior for that purpose.
Dave