I see how people got this idea from, since making it a pandora, flashes the chip, sectors on the chip can die, as with all flash memory like thing, including psp flash, memory stick, usb flash drve... Although they do not break that eaisly, most company says that a sector of a chip can wear out within 100,000 rewrites. But thats only sector of the chip, although that one sector that wore out could matter it is unlikely. I have flashed many rewritable chips through a programmer, n they still work the same. But could it happen to the chip in pandora's battery, i donno. The flash chip would probably not corrupt but maybe some other chip set that programs the chip n stuff might.
I think the answer is yes. I've always known that when changing chips in a PSP battery (hacks) are dangerous. The battery installer itself is not 100% safe and said what its supposed to be. Just like M33 firmwares they have bugs and may cause some of your data to corrupt. They may also leave irrelevant information on the battery too. This means there will be double the info on a battery. If this happens many times your chip may breakdown.
They can't do anything bad to your PSP - They never write a thing to flash memory, totally safe.
All the program does to the battery is write the EEPROM.BIN which is a very small file and is totally rewritten each time, the only problem could be that the program fails to rewrite it through a corrupt EEPROM.BIN, in which case you would have to flash the fake serial.
As vcbc said, it would take a very long time to wear out a flash chip.
PSP, all the way from 1.00 to 5.50 GEN D2 - DS Lite w/ M3DS Real (M3 Sakura v1.34)
PS3 3.01 - iPod Touch 2G 16GB Jailbroken - Xbox 360 60GB - PC, Q6600, 3GB DDR2, GTX260 (216) 896MB