1) it will lower visual quality and 2) what happens if the game is CPU bound and no matter how lower the settings are set, you cannot maintain 60 FPS?
A1) It will not lower visual quality at all, at the same settings it will look identical but without tears and without visual stuttering. Gsync will dramatically improve visual quality its a pure win, there is no downside besides buying a new monitor.
A2) This is what Gsync is designed for. If you can already maintain a perfect 60 fps then gsync wont help much, what gsync makes possible is vsync quality in the 30-60 (or the 60-120) range without compromising the quality of the image (tearing) or stutter (vsync).
I've never noticed tearing in console games to be honest. Since the hardware is more or less "set", while a PC's hardware isn't, it's basically easier for developers to set a framerate target and meet it more often than not. Conversely, every PC is different so developers can't really set a framerate target there, and if you pass a certain level of performance you may get tearing with vsync off. So I don't really see why MS is bothering with this thing they're doing - it really isn't needed. IMHO anyway.
You have never noticed tearing on the consoles because they run with Vsync on. That is why the developers target either 30 or 60 fps but never anything in between, because the stuttering effect only occurs in between the magic figures. The fact the console hardware is fix does allow them to target a very precise performance level, but it causes enormous compromises on the developers part to get it that way, both in terms of visual quality and in terms of development time. Sometimes they would like the option to drop to 25 fps to get this one effect in that would really make a difference, and at that moment the player wouldn't notice so that is when gsync would be really good.
Mircosoft has nothing to do with gsync at all. It is needed, its sorely needed and you need to watch the videos explaining what it is and why it matters because its going to be huge and vsync will probably be gone completely in a decade. Its a major advancement.