River,
Any damage beyond a cosmetic scuff that you could probably remove with an eraser is always "too damaged" in my opinion (and the FAA's). Virtually any physical damage can set up virtually unnoticeable vibrations that are still hard on the motor and arm and may affect control in a way that the software isn't designed to cope with. These aren't airplanes where the propeller only provides propulsion. On a drone, the props are everything. You could put the same system on a lawn chair and it would fly nearly as well.