Originally posted by DHA image quality is always affected...sometimes not by much, but the degradation is there. Anyone who tells you otherwise is parading fiction as fact.
Generally speaking, this could/should be so, because any abberations would be magnified by some factor, and which lens is totally free from any abberations?
However, speaking about 'Image Quality Degradation' as the inevitable result requires (to me at least) some additional qualification. To many, image quality is equal to little noise (which is a film/sensor property) and then sharpness, which is our perception of resolution and contrast combined, plus minimal abberations (CA, coma, geometric distortions etc.). And with any good TC and any contemporary sensor, resolution will be increased with a proper, matching TC. Some practical examples where I have found a TC beneficial:
Tamron Adaptall-2 SP 35-80mm CF macro: Sharpness from corner to corner is definitely increased. Yes, you might say, because the FoV gets smaller - but that together with the increases resolution might actually be what I want for macro. So, I should compare a croped non-TC with the full with-TC image.
Tamron Adaptall-2 SP 350/f5.6 mirror lens: The field is flattened; catch-in-focus becomes possible and vignetting is being reduced. Again you may want to compare cropped and uncropped images and to me, the increased resolution makes images of for example the Moon with TC the clear winner.
Pentax HD 1.4X AF TC with the DA* 200/2.8 and the DFA 100/2.8 WR lenses: I have pixel-peeped and pixel-peeped and cannot see any degradation in normal situations (typically with lenses stopped down a bit). I see what I went for: Increased resolution (and no decrease in contrast). Of course, If I shoot over long distances in turbulent air, external degrading effects may be magnified, but that's no different from using any long(er) lens over large distances on a poor day.