Richard,
Chrome plating is not bad for steel per se if done properly; just like anything else. If the people involved are quality oriented then there will be no problems. A framebuilder with experience at chrome plating can see to everything. Since I have been restoring frames for 30 years I know quite a bit about what goes on. I did my first full repaint on a frame I had chrome plated (Lugs, stays, crown) in 1972. Since that first experience I have had access to chrome platers. I've worked with several very good ones. The plater I have now is the best I've ever encountered and the main polisher and myself are good friends (we discovered we're both drummers and the friendship was established many years ago) and they work with me like no one else ever has. Plating new frames is rarely a problem. Replating is a whole different issue and does not apply to our discussion. Either way, a good plater is worth their weight in Campagnolo first generation SR rear derailliers.
The stuff that Schwinn says probably applies to 753 tubing and the fact that they would have the stuff commercially done. When I polish frames by hand there is very little metal removal (you can still VERY clearly read the Reynolds tube stamp on the top tube and down tube of my frame) and does not generate the damaging heat that commercial polishing my machine will. What I'm saying is that if you want to take the time and effort and you know a good plater you can produce some beautiful work with no compromises in the integerty of the frame. It's all in who does it.
Plating is not bad; bad platers are bad.
Brian Baylis
La Mesa, CA