Barrel doesn't touch any part of stock.No effect on barrel harmonics.Results in better accuracy.There are other methods to achieve accuracy like glass bedding.Easy way to find out if barrel is free float run a dollar bill underneath barrel between stock and barrel.If bill travels the lenghth of barrel it's free floated.
The stock on that model is it's downside, and this weakness is shared by certain SPS models as well. The stock is relatively flexible and while beaglefan is largely correct, the single biggest problem with a non-floated barrel is that the point of impact changes with stock pressure variation.
There are other M700 models that offer a floated barrel and aluminum bedding block that will be much more stable to shoot, due to a more rigid stock and better bedding setup. The OEM stock can also be replaced by a used HS Precision stock ($200+/-), which many people pull off and sell when converting their VS, PS or 5Rs to full customs.
It depends on what you want to do. For an average hunting/range rifle, wont be a big deal. If you want to do some serious target work or long range hunting or anything that requires a high level of accuracy, then it will.