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The reality is that anytime you puncture the bark or cambium layer of a tree it will do damage. Read Shigo's compartmentalization of trees and it will explain it all. Because the tree is damaged doesn't't mean that it will die it just simply means that it's damaged and not perfect.
Iv'e cut trees down with iron bars in them and the most bizarre thing was a scythe grown into a tree. Trees can take a lot of abuse.
I worked for Davey Tree and we use to install lightning protection in a tree that required drilling into the tree to anchor the ground wire. We damaged the tree by drilling into it to the tree but overall we protected the tree and prolonged its life. The other thing to look at is cableing and bracing of trees. You damage the bark but prolong the life of the tree by protecting it from wind and ice damage.
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