Not only of you romance her, it advances her friendship path too
But to be honest: Dammon has to get to the city the same as any other character, so it make sense for him to be there. The only solution would be, that you might find notes on his body, if he dies so that you can do the update yourself. Shouldn't be too hard for someone, who just used an ancient forge to make armor, or a sussur forge to make weapons.
