It's one way of looking at it. The location along wih size and depth play a role. It changes the shape of the core along with the overall dynamics. It also removes weight.

To further cheech's point yes it can in most cases. Be mindful of this, a weight hole is a more permanent fix by changing core dynamics. The answer may change dependent upon what you are bowling on. A P1 will decrease flare but it may not control the ball motion. I have drilled P1's and turned burn out HP's into backend board covering balls.

Here is a good video showing different balance holes  http://youtu.be/c93ZRsWbF7U