The problem was that if it happened, the disk became unusable as there was no way to rewrite the servo tracks. With damaged servo tracks, the disk will be stuck in click of death mode. That this could damage the drive and drives could damage the disks was a separate problem with the hardware but are they really separate if they both came from poor engineering?
I understand the consequences of a lost servo track. But I dispute that this was a significant problem in real life.
Nothing I have ever read about the Click of Death (including a quick refresher just now) indicates that the servo tracks were a primary cause. It was misaligned
drives that caused it.
The thing is, I could swear that the Jaz disks got the "click of death" before the Zip did, and that this threw greater scrutiny on the Zip once problems started creeping up. I don't think the problem was anywhere near as big as it was made out to be; my own Zip drives all worked perfectly, and in the years I worked at Apple resellers or doing Mac support, I never even
saw a defective Zip drive. (Jaz was another matter...) I did support for literally hundreds of systems and never saw a bad Zip. I know that this is anecdote, but I do think the problem wasn't as big as many people think.