Shouldn't sound bad at all. I didn't try this out but I know that headphones that already have a big soundstage (AKG K701 e.g.) don't sound too good with that technology. The HD600 sounds better since it doesn't create a big soundstage on its own.
If we transfer this to IEMs which have (most of the time) a soundstage that is even smaller than with the HD600, it might not sound too bad. But I guess it always depends on the IEM you're going to use.
Anyway, the effect of Dolby Headphone will work with IEMs in any case. But I cannot tell you how could it will sound or if it's going to better or worse...
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