I'm an outlier myself, and so is anyone who did some serious sports for a significant amount of time. There are other reasons to be an outlier too. But they're not so statistically significant.
That is doubtful, but possible
It is used for individuals. That is where it is harmful
It's hard to conceive of anyone meaningfully "harmed" by being a BMI outlier.
The only real occassion it comes up is when some lean and uncommonly athletic person gets miscategorized as obese and get warned of increased risks to their wellness if they don't lose weight. A warning which they generally laugh at because they know their own situation.
That's hardly "harm" -- "mild social nuisance" is more apt.
"You are fat. You must diet."...."Oh my Dog!! I am fat!!! I will fast"