If you know what you're doing, it does take a very long time to sharpen away so much steel that the knife isn't anything more than a spike. But an unskilled/overzealous person can easily destroy a knife with just a few bad attempts at sharpening. I've bought junk knives, who in their former lives were good knives (Buck, Case, Schrade, etc), that had been sharpened flat on the edge. Some of these were basically folding butter knives. I was able to reprofile a few of them for use as actualy knives again... others were too far gone.
Foldings knives, Buck 110/112s are especially bad for this because of the pronounced clip, have a tendency to lose so much steel due to poor sharpening or just too much sharpening, that the tip is no longer enclosed in the handle when closed (I've got a 110 right now like this that I'm trying to decide what to do with).
The simple solution to all of these problems is either have someone else sharpen them, or learn to do it yourself on old, cheap knives.
In today's world, if a knife lives to the point that it was sharpened away by good sharpening, it must have been a damn good knife.