We can argue about this all we want. Until the rules are changed, you'll be required to deal damage cards properly in any match where there's a TO doing their job.
No question, it's in the rules. While I agree with Zlashie's overall premise, I don't think it's necessary to go back and change the rule. I just think that the rule irrelevant and unobserved.
I hope TOs have better things to do with their time than make sure people are laying down the proper amount of cards. But, you're a TO - do you enforce this? Not to my recollection anyway.
Everyone in our group plays by this rule (dealing All damage cards) even in casual games.
I absolutely enforce it when I am the TO of an event if it comes to my attention that someone is not doing it.
Jim