Will you do more damage to your car if you drive it after it has undergone water damage?

Usually no. Usually, driving with the climate control set to defrost and the temperature set for fairly (but not all the way) high is good as it removes water from the interior.

If you own a GM vehicle, yes, as you've got a lot of corrosion in your electrical connectors. Until you get all the dash lights shut off and everything works properly for at least one year try not to drive it more than necessary. Expect a few things to stop working from time to time over the next 5 years.

Oh, and if you own a Nissan (Infiniti included) you should consider getting rid of it before the suspension and body fall apart and kill you.