In your game, your characters can read 1 inch letters on the side of a barn from a range of 10,000 yards, assuming no obstruction?
Vision rules are in the spot skill I believe. All vision is limited. Per 10 feet of distance you have a –1 to a spot check. Which means at some distance you are unable to see things even without an obstruction, with normal vision. This item however would help, by providing x2 magnification, thus extending your sight by x2.
Much like normal vision should be extended by x2 using this item, darkvision should as well since it functions like normal vision.