I would consider it as a great example of what might happen when these devices were used. It's not exactly "damaged". I think of these the way I think of badly off center stamps, except that this has a story and is therefore collectable.
The whole reason for imperf stamps of the first third of the 20th century was for the vending and affixing machine companies. That is why those stamps and that section of the Scott Specialized exists. Also the imperforate coils section, which is almost certainly what this stamp actually is.