I don't think it's highly damaging. It's an acronym. Is BBC's name highly damaging?
The prudent approach prevailed for a hundred different reasons but online user metrics weren't one of them. Apparently people were not very fond of the British Broadcasting Corporation, especially outside of the angloshpere.
I can't think of an acronym example though.
Naming things is hard, someone should setup a focus group :)
Definitely came after the original BBC being established, and definitely is orders of magnitude less known than the sexual slang variant. So yeah, the Gimp comparison doesn't stand, at all.