You mean it no longer actually agitates but simply spins (slowly)? If so, the guy screwed up something. If you mean it used to go bang and thump but now just agitates quietly, then he probably fixed a problem besides that it didn't drain. If it doesn't agitate at all, then he needs to come back and correct whatever it was he did wrong (and I wouldn't expect a service call charge).
As for the clothes, I doubt they're cognizant enough to recognize the difference...
If it isn't agitating at all, really soiled loads will probably not get as clean as they would otherwise. As for the effect on the clothes themselves, less agitation will undoubtedly cause less actual wear on the fabric (probably not discernible) at the aforementioned cost of less intensive cleansing action (that's why they make them agitate to begin with)...
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