It's great. Doesn't degrade anything, but the higher the sample rate (and the number of internal connections you have), the more latency you're going to have and the more CPU resources you're going to consume.
I had a good play with voicemeter and virtual cable for the purposes of running Hesuvi and APO equalizer over a modi/magni yesterday to compare the software solution positional audio solution to my hardware sennheiser GSX 1000. Voicemeter/virtual cable purposefully avoids processing that changes the bits of the sound, so much so that you can't use Windows volume control with it at all as any downmixing from 100 will impact on the sound. To my ears with my kit I couldn't detect any noticeable quality reduction through voicemeter into a modi2U/magni2/Sennheiser HD598 setup verses the same without voicemeter. I also happened to have Equalizer API and Hesuvi running on the interface (with bypass for effects for stereo inputs) and it worked well. I ultimately hated it due to the way it handled volume control but it did give me some additional inputs and outputs especially with the virtual cables that would allow recording voice, teamspeak, game audio all seperately and allowing me to balance the audio of them independent of the programs themselves.
But despite the drawbacks I use Windows volume control from my keyboard and I am not willing to loose that nor do I want to really buy the preamp necessary to get appropriate switching for speakers and headphones working externally.
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