Yes, CD's can and will be damaged if they are played over and over, and that will happen even more often when they are recordable CDs.
My explanation:
CD ROM drives use lasers to read the data writen in the CD and CD Writers use lasers to burn info in to th media, so what's the diference between between a CD ROM and a CD Writer? It all lies at the "power of the laser", you'll need a stronger laser beam to burn a media.
Playing a CD over and over will cause the laser of the CD ROM drive to gradually contribute to the degradation of the CD track, and it all depends on the quality of the media and CD ROM drive ("cheap" CD Rom drives will probrably have "less" control quality at the laser mechanism, so there is a possibility that they can damage media more often).
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