Yes we certainly have to strike a balance between using the sustain pedal appropriately, and blurring the harmony.
A general rule of thumb is if we can get the desired effect without using the sustain pedal, then don’t use it.
Overusing the sustain pedal can become a ‘crutch’ that hides other areas of bad technique such as not playing legato.
I wouldn’t treat it as an on/off switch, rather a device that we can use to make our harmonies connect smoother where needed. Sometimes we may have large jumps to make in which case the pedal is a useful device.
I’d recommend to try playing the whole song without the pedal. This may sound very strange and unnatural to begin with, but it will also open our ears to the parts of the song where the pedal is not necessary and so we are using it just out of habit.
You may find that there are some parts where the pedal must be used, so identify these points and that is where I would tastefully apply the pedal.
Above anything else, follow your ears Iordanis, if you feel there is too much pedal, leave it out, and vice-versa.
Let me know if that helps and if you need any further guidance let me know.