I have always filled my fresh water tank "full" by using the over flow vent to signal the tank is full. When it starts spewing water, I know it's full, regardless of what my water meter reports.
I don't know how accurate the water meter is, but I've used it enough to know when the on-board sensors show only 1 light, I know that's approximately 40 - 42 gallons of water, based on the water meter.
When I use the water until the pump starts spitting air, I know the water meter says 45 gallons before flowing out the over flow.
I have a 32 gallon water tank I can fill when we are not at a full hook-up site, transport it back to the camper, and use a water transfer pump to pump it into the fresh water tank into the camper. The water meter appears to be pretty close when this tank is completely full to completely empty.
To answer your question, it does not hurt anything for the water to spew out the over flow (wherever it's located on your camper). In fact, that is really the only way to be sure your tank is truly 100% full.
Now, if you want less water ... say, only 10 gallons in the tank for travel only and flushing toilets on the road, then the water meter truly shines it's value!
I also like the meter because it lets me know how much water I'm adding to the tank before it spews out the over flow. This also tells me how much water we've actually used. It also helps to determine how much is in my sewer holding tanks. I have a 32 gallon Barker blue tote. The water meter (water coming in), always tips me off, how much water is going to come ... OUT! So I do not overfill the tote. I can stop dumping before it over flows the tote.
The water meter is a significant tool I use and I've come to depend upon it ... especially for dumping, keeping track of how much is being used, more than simply filling the tank.
Previous trailer, same water tank, same pump I use on the Montana:
My overflow vent:
The Blue Tote: