Can somebody who has successfully completed intensive treatment for bpd and has excellent insight raise children without causing psychological damage?

Certainly: Insight is quite helpful, often seeking support and guidance are the optimal choices, if in doubt ask for advise and support. Knowing the need for that is 1/2 the battle. Insight is not always enough to change behavior. Best Wishes

Premature lung ds: There is an abbreviation BPD which is used to describe a chronic lung condition typically among premature infants.