Absolutely. I think that over-reliance on analytics has had a similar effect; compared to relying primarily on proper usability research and in-person user studies, doing that creates a detachment and distance that further removes the project from reality.

How great the impact is depends on how management uses the data. If they use it add resolution to broad strokes from studies and the like, there may be no negative impact at all, but in my experience it's much, much more common for management to read analytics like tea leaves and interpret it in whatever way best fits the individual's/team's biases/agendas.