What you're seeing is the submix out to Main. You see how your Main is highlighted on the third row (physical output)? Software playback is showing what mixes out of the computer going to the Main out. If you select a different output on the third row, the software playback settings will change. What your picture is saying is that any audio sent from the computer (software playback) going out analogue 1-2 or 3-4 will go out your main output at full volume. If it goes out the other channels, it will not go out the main output. And your main output is set to physical output analogue 1-2. (This has nothing to do with quality though you could adjust the software playback section to rebalance audio sent to analogue 1-2 verses analogue 3-4 in sound level if you wanted on the second row)

Stupid question what determines a programs playback in the middle row... when you can't set it for example a web browser?  I get that you can set in some programs... but a lot of windows ones you cannot.. what determines where those go by default?

would i be able to set things to 5.1 and then hook up and route speakers in TM to separate outs on the UFX? This way?
Though i suppose ill have to hit the test button to find out which is which