I will admit that I have used caulking to repair siding chips all over a house like that. I drove by today to see how it held up before I responded this thread.
It still looks pretty good. When I did it, I told the customer that I thought it was temporary. It's holding up pretty well though.
Go for it, it's already damaged, you won't hurt it. I used a painter's caulk called Kwik Caulk made by Conklin. My next choice would have been Dap, Alex Plus. They are both a latex base silicone formula. Easy to clean up and easy to shape without stringing and running.