Earlier quoted context omitted.
The collateral damage they are talking about here is avoided human misery and death. This is one sort of collateral damage we can happily live with.
I think they mean something more along the lines of Dragonflies. They love to eat mosquitoes and their larvae. Not that we shouldn't do it, I'm sure they can live off knats just as easily.
"The ecological effect of eliminating harmful mosquitoes is that you have more people. That's the consequence," says Strickman.