VLC is incapable of increasing the actual power past 100%, all that is being done is the waveform is being modified to be louder within the allowed constraints. If this wrecks the speaker, any other non-VLCed sound could just as easily, and the speakers are therefore underpowered for the laptops internal amplifier. Class action sounds in order.
Also many mastering engineers do the exact same thing to make the music "louder" because the record label/artists demand it. Maybe Dell should start making popular rock/pop music void the warranty as well.
On the other hand, a movie with lots of low frequency content (explosions and stuff) whose audio is clipping will damage the small full range speakers since most of the audio energy is concentrated at the very low frequencies (where the signal has a lot of power) and the peaks are long.