As far as killing off good fungus - yes, perhaps it does, but this is a method I have used for over 35 years, and I have noted no problems. I have not had a fungal infection in my collections for the last 10 years that I am aware of, with exception to two plants that arrived with the fungus already active in the media. I lost both because I was not able to get the infection stopped in time.
I do need to correct my original post - I have used this method
up to three times a year - I do try to do this at least once to twice a year for all my orchids, and if I have a situation, such as mildew growing on the pot, I will use this to as needed.
I feel that the loss of beneficial fungus is a sacrifice I will make for the better overall health of my plants. Again, this is my method and others will have their own experiences; having worked in several greenhouses I can attest that an unchecked fungus can wreck your collection very quickly, whereas the development of "good" microbes can be rebuilt in the media rather easily through the use of organic fertilizers. Also, I am in agreement with the statement in the thread that states the mycorrhiza is definitely important to seedlings and orchids which are not able to produce chlorophyll, but not as relevant to the adult orchids which I have. And certain rather touchy species (such as the Ghost orchids) will need the fungus to create the sugars it needs, but these are not orchids that I grow.
I know of no commercial greenhouses that do not regularly treat for fungus; I guess my thought is that if it is good enough for the pros it's good enough for me.
Again, this is only my method - everyone will develop their own. But to me, prevention is better than a cure anyday...
Steve