IANAL nor intelligent, but after skimming the text of the directive I felt like the definition of damage is very limited. In particular, if I understand correctly:

our business to lose this giant contract

would not be covered by this directive, this directive is only about a human being hurt in some way,

thousands of consumers left with bricked devices

would be covered in case of “your game installs a kernel-level anticheat and the anticheat breaks PCs”, but not in the case of “you uploaded an upgrade to a firmware of the washing machine you produced and it bricked the machines”; the directive is not about a product breaking, but about the product breaking your health, other property or data,

my washing machine to eat my dog

is basically the exact case this directive covers.

Regarding /etc/skel being an empty directory, note that it is one of the few places outside /home where you can actually expect hidden files :) On my Arch it contains Bash dotfiles, for example.