Hybrid vigor is more about growth and health rather than working ability.
So yes u could get the worst in both breeds but they should still grow quickier and be healthier long term
Thats why an awful lot of meat (beef, or lamb) will come from cross bred stock for that reason, but most UK farmers won't use the X breeds for breeding past the 2nd gen, unless they have formed theyre own 'mini breed', like blue grey cattle or scotch mule sheep, but even scoth mule sheep i can't think of many breeding off them.
And most will keep some pure lines for breeding the replacements breeding stock and X breed wot they sell for fattening/meat
As u have bred a cross breed u tend not to have any inherited diseases even if 1 of the parents carried that disease because the other parent will be guaranteed not to have it if a breed specific disease, but after the 2nd gen these diseases can sneak back in as usually at a basic level u would need the disease gene on both sides of the mating for the pups to be affected.
Breeding 2 different breeds the other side will never be a carrier, but when u get into 2nd gen+ some pups could be carrying genetic defects from both original breeds
In the old days i was told it was illegal to own a cross bred bull and the ministry would come round and kill it if u had 1, and even now u'd only have 1 for bull beef