Does the dish lose flavor when it releases a lot of smell? If we taste with our smelling sense, and in the process of cooking aroma is being released into the air - does that mean that the more smell you fill your kitchen with, the more flavor you lose?

Is the iconic experience of aroma filled kitchen actually counterproductive to cooking flavorful food?
No, not really. Yes in another way.

Scent is a great indicator that you have achieved your objective. Recipes will often say things like "sauté until aromatic". With experience, bakers can often tell that bread is done by the smell. Things simply smell done. If you stop cooking before you can smell that doneness, it is likely that you will miss out on what that dish could be. 

You are correct in that every molecule your nose picks up without the palate is one that your palate cannot experience. But once your nose is really tickled by the aroma, that is a strong indicator that your food is ready to release those flavorful molecules in a way that our palates (along with our noses) can interpret.