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"“Marines who did not know what to expect were extremely impressed with effects on target,” the report said.

How about those who DID know what to expect?
How impressed were they with the replacement for the M60?

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Since the ammunition is the same, why would there be any difference in the effect on the target? What they should have assed was it the new weapon functioned better than the M-60s, in terms of reliability etc.

One second thought, I guess with a machine gun there might be some difference in target effects due to changes in cyclic rate and dispersion differences between the two weapons.

The M240 is far more reliable than the M60. I've seen tens of thousand or rounds through both. The M60 jams much more frequently than the 240, and M240 jams are usually less severe. BTW - My experience is from 8 yrs in USAF Combat Search and Rescue, using both weapons (as well as the GAU-2 minigun) door mounted in the HH-60G Pavehawk.