Apply your reasoning to going long. Which of your two purposes of the stock market does your short term trading fall under?
Should short term long-only trading be allowed? Is that an "artificial means to manipulate and (increase) a stock price?" Is that "artificially created demand?"
When you make trades are you doing it to help the company? Are you trying to influence the share price? Are those the reasons institutions buy, or go short?
Shorting is not "artificial pressure." It is one of the tools the market uses to gauge a fair price. Everyone knows about it so there is nothing unfair about it. The short shorts because they genuinely believe the security is overpriced. The short is not Snidely Whiplash, and the long is not Dudely DoRight.
Edit: Just a FYI, I don't think you're a pain in the arse talking about the short position. I like hearing about it.