Assuming you have some sort of color management in place, I would continue to do it the way you are.
But let's say you did want to follow this fellow's advice. Here's everything I can think of.
Putting the models and products together on one Photoshop "page" can wind up making the PSD file very big as there may be spaces between the models and products.
Never, ever flatten that Photoshop file. There's no need and makes a very complicated workflow if you have to make any changes.
You're right about the magazine printing process taking over color.
What are you sending the magazine? A PDF? There's totally no need to flatten in Photoshop then.
The art is flattened in it's own way.
I'm also assuming that your prducts and models are close to each other
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There is nothing safer about the workflow suggested by your advisor. In fact it seems to yield a more complex workflow that could be less safe. Assuming that each of the images is properly color-managed and has an ICC color profile embedded, why would there be color problems that there wouldn't somehow be if you tried to merge the images into an uber-image in Photoshop? In fact, I could imagine more problems if you tried to combine images with different profiles into a single image in Photoshop!!!