Yes, it's certainly possible to go overboard in this area, and end up with a lot of people in a team becoming inwardly-focused! It's also true that organisations need to think hard about how far down the "Continuous Deployment" path they want to go, and whether they really need to push to production five times a day, as that level of automation does come with a setup and maintenance cost.
What we've found internally, though, is that development staff became much more productive, and in fact it became possible to develop features that would never have seen the light of day without the agility the new techniques brought to the department. I should see if I can dig out some presentations and write up some of our experiences, as integration does bring challenges beyond the usual application development pipelines and our story might help others.