Patrick, I think it will convert and delete anything that's a linear object.
I just tried converting a drill hole, which is a special object with special behavior and it indeed created a linestring along the graphical definition of the hole and deleted the hole. Good chance the linestring is now a part of the drill plan now...
Depending on what modules you use in TBC, there may be lots of special linear objects that you don't want to blanket replace with linestrings.
Maybe the enhancement should be to restrict the conversion to objects from CAD files like 2D and 3D polylines?