Yes, but you can use dead silence to negate that effect. Right now no one uses it. Even folks with headsets can't even tell the difference.
Making it negate suppressors is no different than other perks such as tactical mask negating most of the tactical equipment in the game.
And you don't lose damage. You only lose range, when using suppressors and in exchange you get minimap concealment, sound muzzling, and muzzle flash removal.