The damage example from the top of my head is the increasing cost of running a node, which is a centralising force. Additionally, the utxo bloat is a mining centralising force. Centralisation makes the network more vulnerable.
The original post is more philosophical than technical, but in my opinion, in case of bitcoin serving as money, the tech should follow the original idea, not the other way round. If we don't defend it and optimise the tech to serve the original purpose, we will lose it.