Just tested the dongle on my IP6+ (iOS 10) with the 846.
1st thing I noticed, is that plugging in the dongle did not pop up any notifications that something is connected, and that plugging in the dongle does not affect using the 3.5mm. Also, switching from 3.5mm to the dongle was instantaneous. The headphone volume reset at the middle from whatever you were using before using the dongle.
There was a black background just like using the 3.5mm. Volume wise, the dongle if anything is actually a bit louder, perhaps 10-15%. I used Tidal lossless and tested some songs from The Flashbulb - Winter Map. I noticed that the bass is stronger, perhaps almost a bit boomier. The bass fades in quicker and louder and less subtle. And that the beginning part of the song with a lot of crackles, the crackles were more louder and more apparent. Another track Bridgeport Run ran with same speed as before, and the sound was crisp and nothing was lost in the listen. I felt like the smaller and more subtle elements of the songs were brought out more. Perhaps there was more of a slight emphasis on bass and treble than before. However, differences were definitely subtle... subtle enough that I often don't know which one I'm listening to without looking at my phone and that I would definitely not be able to pick out which is which on a blind test. I tested some vocals songs, Adele, Amy Winehouse did not yield any obvious differences either. Further testing did not reveal any obvious differences in soundstage, treble/bass extension, background noise, speed, if anything I enjoy listening to this dongle as much as I did my 3.5mm.
Whatever this dongle is, I don't think it's worse than the IP6+ 3.5mm. Perhaps there's also less electrostatic noise using the dongle since I didn't get any of the usual noise during the entire testing period, possibly confirming that the DAC is inside the dongle. Also, I don't feel the need to use an external DAC like my Mojo to compensate for the sound quality. The dongle adds VERY little to the headphone bulk (I would just plug the dongle in with my 846 at all times) and has good enough SQ for me.
I also tried plugging and unplugging the dongle to see how fast it can start playing music again, and the effect was absolutely instantaneous. I mean if it were a DAC inside shouldn't it take just a bit to connect to the phone? It starts up as fast as I were to unplug and plug into the 3.5mm.