Honored Scribe,

The siding itself doesn't damage it, but ripping off trimwork so you can put
the siding up does, and so does the moisture that gets trapped behind the
siding (or the useless insulation behind it) and rots away your wood. There
are also bugs that
would be attracted to all this free shelter, food and drink.  The best part
is, it all goes on behind the impervious siding where you can't see it, and
you don't know you have a problem until your house collapses in a heap.  But
then, of course, you could plant ivy on it.

Ralph