That is the biggest proverbial tool in the toolbox for GM-directed, High Concept Simulationist play. For Gamist or Narrativist play? Its utter kryptonite.
When I think of gamist, I am thinking of
Score - Achievement
Stakes - Risks
Construction - Perfection
Tempo - Flow (admittedly rarer)
So is GM-curation kryptonite for gamism? It really comes down to the priorities of the group.
Score - Achievement
Can Rule 0 be wielded so that achievement is an empty concept? I think so.
Must it be? No. In 5e's case, the gamist needs of players are highly served precisely by
not being as demanding as say TB2. I think here there is a strong risk of (mistakenly) conflating difficulty with gamism. Of our regular group, about half
loved TB2 (I was in that half) and half didn't wish to play beyond a couple of sessions.
Stakes - Risks
Where DM is an honest broker, Stakes - Risks is preserved. Testimonial in this direction comes from groups who say things like - "We always roll in the open", or "The dice fall as they may." Equally, there are groups who follow "rule of cool" and so on: they're not prioritising gamism.
Construction - Perfection
This can undermined by a DM who doesn't uphold internal scaffolding for value. An example is where a player feels they have earned X, and then DM simply bestows a copy of X on another player. X is thus devalued. Rule 0 has practically no interaction with this: it's a symptom of other errors.
Tempo - Flow
This one can go both ways. Tempo can arise in the cadence of conversation and yield flow. And it can arise in conscientiously applied system. Rule 0 could obviously undermine the latter, and I think a DM would have to grok tempo and see to it that it was upheld to avoid that. Again, I think it's less about Rule 0 and more about the other rules.
I honestly believe that's the slippery thing with DM-curated play: it comes down to what that DM actually does. It is as toothy as the social consensus in that cohort.