In theory, when you cut, scrape, or wear through any "coating" on a steel tank, it exposes bare steel which will then rust. And the rust will spread under the coating unless it is intimately linked.
But with galvanized coatings, if you cut the coating, the zinc will be consumed before the steel, protecting the steel from rust. And supposedly the zinc will re-form to some extent (i.e. electroplating through galvanic action) to re-protect the spot that was nicked.
So the ugly zinc is still the best long-term protection unless you can keep the other coatings intact. It is also fairly simple to get a can of "cold zinc" paint and recoat a galvanized tank.
They don't zinc the inside of tanks because it can be toxic when inhaled.