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I don't think wear will be an issue unless you have the branch crossing at exactly the same place in the rope every time. Any single tie in shouldn't cause more damage than would be expected for 'normal wear/tear'. Something like a sharp rock ledge would be more concern.

I don't know that what you did was "wrong". I think it's still a timber hitch, but could have been more optimally tied, eg aka guilding the lilly.

I'd have set it up like you were installing a block as No_Bivy implied, but what do I know?