To be clear, there's no permanent damage from over-exposure to a CCD that I know of to the chip, but in general no one really likes wasting their observing time and resources. Hence the surprised they pointed HST at it comment is that is a hugely over-subscribed telescope, so you'd have to really do your job to convince them you'd get good results from using it. (And I assure you in that article I think the author just said "breaking" the CCD instead of explaining over-exposure and all that, likely cause he doesn't understand the details that well.)
Shutter speed... I don't usually do this stuff so just asked a friend who does, he says the quickest his instrument he uses on the VLT in Chile is .1 seconds (so I guess .5 is more for amateur-level CCD cameras, as I know that's the limit for the one the students use in my practicum). The issue is you
consistently always want your shutter to open/shut to an absurd degree most people don't care about outside of astronomy, and for speeds shorter than that the error starts to get significant. Don't forget, most of CCD imaging in astronomy isn't for pretty pictures, it's for taking spectra, so while it may sound odd to worry so much about this stuff in terms of imaging for spectra a few extra photons can really affect that.
I guess you could probably put some money and effort into trimming down that time, but honestly, no one is going to care 99% of the time because we're usually talking exposures of minutes or hours, not seconds. If you really want to study a bright star or whatever you can always just go to a smaller telescope that is better suited for it, with the added bonus of smaller ones are always in less demand. Telescope time is a precious resource so you always need to devote some time explaining why you need that
particular one, so if you're wanting to observe something that pushes a telescope's limits on the short exposure side you'd probably just be told to go elsewhere unless your case is really compelling.
Caveat that I am not an optical astronomer, I just hang out with them, goes here.