Woolite was invented to care for our Wool items that we hold dear. The reason it is bad for cycling wear that is Not made of wool is this:
Woolite leaves a film on your clothes, making it softer, blah blah blah-- right? well this becomes a problem when you are investing money in these awesome clothes that are quick drying or offer moisture transfer, etc , because that thin film is now preventing the garment from living up to it's original level of awesome. then your jersey that is no longer awesome, starts to smell bad cuz it's holding the sweat in and with that bacteria. not to mention you may find yourself a little overheated or even soaking wet. yuck.

another reason to avoid it:
it makes the waterproofing on garments go bye-bye.