Nope. Thats a barrier cream - so the cream gets stuck in the fibres of the material, clogs it up and the absorbency of the material suffers. Last time daycare used a nappy cream like that on one of DS's nappys - apart from me going ballistic - I had to soak it in quite warm water and scrub with a toothbrush to remove it from the fibres so it would work properly again.
We use it all the time and I haven't noticed a problem. Will look a little bit closer.