In answer to the question in the title of the thread... yes and no.
As said, there are bad apples in every barrel of every industry and in some ways, it doesn't affect the industry a great deal.
However, it's been said to me MANY times "oh, I'm glad you do gel, I'll never get 'acrylic' ever again" (whereupon, I go into my educational spiel about acrylic and L&P & gel...). OR a client will try to refer a friend and that person says "I'll never get fake nails again, they damage your nails"
I have personally SEEN nails so damaged I cringed and felt nauseaous (e-file punctures THROUGH the nail plate into the nail bed and some very horrendous infections hidden by coloured L&P)
There ARE people out there that do believe that Acrylic nails/enhancements are 'bad' for your nails due to a bad experience and they will tell everyone they know that they are bad. Many times over, I have explained differences and about good techs and bad techs etc..
Heck, there are even doctors out there that believe that 'fake nails' or 'acrylics' are bad.
Soo... to some degree our industry is affected a bit by the errors of other techs. If these people hadn't suffered negative experiences, they'd likely still be wearing their enhancements...
So, we can't say that they haven't negatively impacted us either. Look at all the news, woman burned by acetone, skin infections from foot spas.. etc... A LOT of bad press negatively reflecting upon us and SOME consumers WILL lump us all in the same lot and not seek out services. It's human nature to generalize and we can't deny that.
So I guess I'm leaning more towards 'yes, they do"