I’m not knowledgeable enough to say how does it influence battery wear, but yes, the battery is rated up to 4.35V, and we’re charging it only up to 4.2V, so we’re not using its full capacity anyway.
Note that this isn’t exactly the same as charging at 4.35V and stopping early, as late-stage charging happens with constant voltage and asymptotically decreasing current. I guess it’s very likely that it has a similar effect on battery wear, but I don’t know for sure.