It does neither widen nor narrow the beam of the LED itself significantly.
It reduces the total output (luminous flux) a bit, since the dome helps to get the light out of the die.
However that reduced output is coming from a smaller apparent area (since the dome created a magnified image of the die), so the illuminance (surface brightness, some kind of brightness density) is higher, and that allows a more intense focusing of the beam with a reflector or lens, thus gives a narrower beam with more luminous intensity (candela) and throw.
Edit: I'm afraid that TEEJ quote has some flaws.