http://www.wk2jeeps.com/wk2_quadralift.htm
From what I understand of the above, the system is not air bags inside coil springs, rather it's just an air bag on it's own on each corner of the car. Increasing the volume of air inside the bag will cause it to inflate, raising the vehicle, but not affecting the "bouncyness" of the car, as the pressure hasn't changed.
This is probably a good picture to see how an airbag will compress and extend as it goes over bumps. Note the bottom of each bag, where it will roll in on itself as it gets compressed.