Get yourself some snap caps, pull the trigger, and LISTEN to the sound produced. Then take out the snap caps and repeat the process. Once you do that you'll know the correct answer. That is the sound of the hammer smacking into the frame without any cushioning can't be good for the hammer or possibly the frame. I'll also point out that the pin that retains the firing pin is in a blind hole, so if it were to shatter it could be very difficult to get it out.
As for what the manual states, I suspect that they don't include dry firing a gun 1000 to 2000 times per day, what they are referring to is dry firing to check for function and nothing else.
I've owned Smith revolvers my entire adult life, and have dry-fired the hell out of each and every one of them.
I have never, ever seen frame or hammer damage on any of them...Period.