Well, I knew of this problem on another MB Forum, so I knew to remove the old switch and pull the stem out as far as it will go and reinstall it. The reason you pull the stem out before installing the switch is because the switch is self adjusting. When you pull the stem out, you will hear a noise...that's the internal adjustment mechanism.
So, if you purchased a new switch and didn't pull the stem out prior to installing it, it isn't adjusted to your brake pedal. And no, I don't think it would cause any internal damage to the switch if it wasn't installed properly.
By the way, when I picked up the new switch I was talking to the parts guy about the switch design and he pulled the stem until it stopped then pushed it back in and said "yeah, it happens all the time".
I hope this make sense.