A further note I'd like to present is that this RPG isn't meant to simulate combat in particular. That's just one type of conflict that can be managed by the narrative flow toolkit FATE 3 provides.
Trying to get fiddly about certain balance concerns, certain types of specific damage management, and trying to fret about EXACTLY how much more powerful one thing is than another, and whether something is COMPLETELY modelled by the ruleset is... kind of misapplying the amazing toolset we've been given.
Some specificity is lost, because it often isn't narratively interesting. We're building a story. The rules that we have are about splitting the influence -- more particularly, the types and timing of that influence -- on how that story unfolds.
Actually, I've been trying to think of anything that the system culdn't model...and I couldn't come up with anything but this. So, as I see it, no you
don't have to lose specificity. As long as I can come up with something for this, everything's cool.
And I would absolutely apply these rules to appropriate social or mental situations, the one that immediately comes to mind is applying an Aspect like "Freaking the Hell Out!" at a high class party or other formal social situation, which would cause continuous damage until they managed a Discipline maneuver to remove the Aspect and calm down.
Actually, thinking about it, that might be why I'm so unwilling to limit it to a use of environmental damage on a case by case basis, because making the criteria "appropriate Aspect based" seems like it would open a variety of really cool options. There'd need to be an appropriate situation, but it seems like players who come up with creative ways to arrange something like that should be able to.
And I'm not saying you can't tag the Aspect for effect, or shouldn't be able to do that instead of damage, I just think you should have damage as an option.
And yeah, the 'headless chicken on LSD thing is hilarious.