No, it's not bad for fish or plants. Some fish even like it (reminds them of home) plus it lowers the PH of your water a little, which is good for fish like neons who like lower PH water.
I boil the driftwood until the water is visibly orangy-brown, then I dump the water out and replace with fresh water, then reboil again until the water colours up again. I keep doing this until the water doesn't (or barely) changes colour. This takes an hour or two (or more, depending on the size of your driftwood).
If, after boiling the driftwood you still find it is still colouring your tank water, you can run some carbon in your filter for a day or 2, and this usually removes the tannins for quite a long time.