I went a-Googlin', and it appears that the isolator is, chemically, an intermediate coating that won't be completely at odds with the oils in the exotic wood - in all the examples I saw, the proposed isolator was dewaxed, thick-cut shellac, and no guarantees of success. The wood oils would, if not isolated from the final coating, cause the coating to become a sticky mess, and never to harden completely.
Perhaps one of the guys who really knows what he's talking about can weigh in as to the chemistry involved - all I know is if I ever get a body with a cocobolo top, I'll pay Warmoth to finish it for me.
Peace
bagman