R Binyanim Tabadi was asked this question by someone who ate one spoon of olive oil every day, enjoyed it and wanted to know whether to make a blessing in light of the gemara you quote. He answered as follows (see here for the full Hebrew response - second question on the right)
There is a dispute amongst rishonim on the proper blessing. The Rambam understands that one "goes down by one level" from peri haeitz to sheakol because of the damage (Brachot 8:2) while most of the rishonim and the Shulchan Aruch (OC 202:4) rules there is no blessing.
He then asks two questions
- is the mazik that the gemara describes really an objective reality or more of a segula?
- is today's olive oil which goes through a refining process the same as in the times of the gemara?
He learns from Tosfot on Avoda Zara 35b that olive oil was something sharp and strong, and that in times of Chazal drinking oil was difficult like vinegar in our days. Therefore the mazik of the gemara is an objective reality.
Since today olive oil is different, and that there is real pleasure for some in drinking it, therefore one could go back to the blessing borei peri haeitz. Such was the ruling of R Mordechai Eliyahu.
Other poskim believe that olive oil is still mazik these days, but one who enjoys drinking it, should recite sheakol (as it is forbidden to derive pleasure from this world without blessing) (see more sources here).
Last, some poskim (e.g., R Shmuel Halevi Wozner) felt one should not deviate from the din of the gemara and not recite any blessing.