The phasey sound usually happens from applying correction to unpitched sounds, like sibilants or breath intakes...V-Vocal can't figure out how to pitch-correct something with no pitch.
I never do wholesale correction of vocals. I use the pencil tool and fix only the melodic pitches that need to be fixed, and that works very well. Also, don't forget about also using formant to compensate. For example, if you have to dip a note somewhat, raise the formant a bit. This can make the difference between not hearing the effect, and hearing the effect.
BUT I also have to say...there have been times when I wanted a more "electronica" vocal and used V-Vocal ONLY on the unpitched sounds
Even more interestingly, I was working on a song recently where a held note on the vocal sounded "off." I looked at the note in V-Vocal, and it was dead on pitch. WTF? Making the note just a little bit sharp made it sound "perfect." Maybe I was trying for the vocal equivalent of stretch tuning, or just intonation...
Finally, I too use it a lot on bass.