I have a sgt Major, a 3 striped damsel, and 2 dominos that are protective of their territories, but I have not seen any nipping at fins or such actions. I also have a yellow tang, 2 tomato clowns, 2 maroon clowns, and a bi-color angel. I was worried about the damsels being too agressive for the rest of the fish (the clowns, tang, and angel were added after the damsels), but they are getting along fine. When the tang and angel swim thru the damsels' territories, the damsels seem to back off or not even notice.
I used to have a yellow tailed damsel. That one was very timid and would stay hidden most of the time. But he did fine, i.e. no fins damaged by nipping or anything. Saying that, I believe yellow tailed damsels are not the aggressive damsels everyone talks about. Just my 2 cents worth.