About the only thing that will seriously damage a sprocket is a seriously worn chain. A chain with wear in its links lets its rollers ride higher between a sprocket's teeth. This doesn't do much when the rollers are down fully in mesh, but at the point of engagement and disengagement they put a big load on the tips of the sprocket teeth and will actually bend the tips over.
I don't know anything about a Kawasaki 532 chain, so I have no answers for your 530 vs 532 question.
O-ringed chains are most useful for people who don't oil their bike's chain often enough. If you do lube the chain at regular intervals -- like, every day or twice each day on a long ride -- you can get along without the O-rings.
For what it's worth, the best chain lube I ever found was any good 90-weight EP gear oil. The "EP" designation means Extra Pressure, and it refers to additives that lubricate under conditions of high pressure and low rotational speeds, which describes pretty well the conditions experienced by a chain.