That means that any product you load onto an Oyster is done wholly on the TOM?
I believe so, (if I understand what you're saying).
A travelcard including travel to a station outside of the zones can be issued by LU but on a paper ticket.
You could always split a Z14 between paper & oyster, say, have a Z12 on oyster and Z34 on paper - however, if you had a Z23 on paper, you couldn't add a Z1 & Z4 on oyster.