Well, seems that people who really get into this racing do it quite frequently. So how bad is it??? I think that anytime you push a vehicle to that extreme you are limiting the life of it significantly. So is it OK to do, yes...but you are taking your chances.
On the other hand... I happen to know someone very well who has a company truck (2000 PSD 4WD) and let me tell you, this guy drives with his foot to the FLOOR or not at all! From the take off 'til it's time to stop, shows no mercy to the PSD. I just cringe when I see him abusing the truck like this as he is also driving it on anything from dry pavment to freshly made D-9 tracks. But it still runs as well as ever. Showing no signs of stopping.
So, what can I really say here? It's all in the priorities. Did you buy the truck to use, or to look pretty in the drive-way?!