I was fairly sheltered so when it came to highschool and whatever it was a real shock. I couldn't cope with bullies the same, I had very low self-esteem (still do) and was very distrusting of most people. That's what comes from overprotection. Its only within the last several years or so that I've matured strongly in my faith and as a person. So overprotection is definetly damaging. I'm 22 years old and in some ways I'm more mature than others my age but in other areas I'm less so.
Both are damaging. You have to strike a balance. Even now I still get the odd comment but most of the time its pretty good. I can use discernment. There needs to be more trusting in both parties though. Just my two cents.