Buy the sg 90 servos and a telelbee gyro. You will see a 100% diff right away once its set up, much easier to fly or at least hover for starters.
No, it wont fry the servo at all. Only way that happens is when you turn the gain up too high, it works the servo to death, and you can fry a expensive servo as easy as a cheap one. Often the reason the tail servo fails is the gain is set so high (right on the verge of tail wag) that the servo is running all the time trying to correct and if the tail is a little sloppy or binding the servo works twice as hard and just wears out! Think your LHS is scaring you into putting big money in a digital gryo and servo combo which is over kill as it costs more then the heli to start with. Most of us fly without a digital gyro just fine, just remember why you bought this heli ...cheap cheap cheap...
Its a lot easier to fly with good equipment then shoddy makeshift parts (stock Esky).
You will spend more time enjoying the ride then enduring the pucker effect while trying to keep the heli under some semblence of control.
Bad assumption many make is to try to make due with poor quality and/or sloppy parts thinking they will save money if it crashs. Fact is its a lot easier to fly a well dialed in heli and that means replaceing sloppy servos, links etc and fine tuning what you have. If it handles more responsive and is more manageable, much less likely you will crash.
Crashing less means you save money which can be better spent on even more toys or mods for them!