The steering damper needs to be able to move freely. Any resistance or friction in how it is attached at either end is generally bad. As the handle bars turn, the damper needs to be able to allow for movement in more than a single plane. Because generally the damper isn't perfectly perpendicular to the axis of steering. It is close, but not quite. I would rather have it a little loose than a little tight.
I would rather run without it than run it in questionable condition. It really isn't required on a bike with fairly relaxed steering geometry like the V11. On a TZ250, yeah you need one with 22 degrees of rake and not much trail. But a Guzzi isn't nearly that aggressive steering geometry wise.