There is no group tracks agreed.
But if you direct out from your mix/audio tracks to a 14.1mixer, then put the output from the mixer 14.1 back into a mix track, you will have a group track with similar internal routing to normal daws.
The only pain is muting and soloing tracks in the new group setup is fiddly.
And the clutter is still there from the sequencer and mixer tracks.
I've recorded plenty of bands with this setup.
I have it setup as a template for drums and guitars.
And no it does not degrades the sound more than a normal group setup in other daws.
Whatever tracks use direct out do not have access to the master fx sections,but full control over the mixer sends inserts eq's ect.
My only pain is that ableton need to step up and 64bit there daw so I can rewire my beloved audio damage pluggins.