If you specify /^deegee$/ as "Nick only" in Highlight and then type "//msg $me blah", the line will be highlighted (because your nick is deegee) but $highlight($nick $1-) will return $null, so will $highlight($1- $+ $lf) of course (false negative).
On the other hand, if you specify "deegee" (no regex) as "Nick only" and somebody that's not deegee says "deegee", both versions will return $true (false positive).
What I'm saying is that just including $nick in $highlight (whether you suffix $1- with $lf or not) is not going to solve the nick/message/both problem.