I used it to charge my 2700 mAh cells about 12 times, and I didn't notice a reduction in capacity. I don't know that 12 charges is enough to say that cells don't need to be conditioned while using this charger. Maybe some other folks who've used this charger more extensively can comment on their experiences.
To add to this, let's take a look at the recommended charging rates. Many other threads, and the MH-C9000 manual, recommend charging at a rate between .5 - 1C (C = total capacity of cell in mAh). If you charge 2700 mAh cells in the 401FS using the slow charging mode, you're charging at .1 C, much lower than the recommended .5 - 1C range. At lower charge rates, you risk a missed charge termination, which can lead to overcharging and cell damage. This is why I will no longer use the 401FS for higher capacity cells. I'm not saying that the 401FS will miss termination, or that it will damage cells, but simply that the potential is there given the 350 mAh charge rate.
I've read a couple reviews where cells simply get "too hot" when using fast mode. Since excessive heat is know reduce the overall lifespan of the cell, I simply won't use the fast mode on this charger.