The only time "reduced" signal levels are "better" than high signal levels in terms of conductivity is when the wire has reached a point of saturation. At this point, the wire can't pass enough current and a voltage drop occurs. Otherwise, higher signal levels would always be more desirable. This is the "simple & understandable" version.
Think about our signal using this approach. The more signal that you have, the more that you can afford to "lose along the way". Since the vast majority of the "big" signal still makes it through unhampered, the results will be less noticeable.
On the other hand, if we have only a small amount of signal and some of that is "lost" for one reason or another, the results would be far more noticeable. This would be due to the fact that we had little ( if any ) to spare to begin with.
The same analogy can be followed all the way through the audio chain. If the source component does not reveal ALL of the recording to begin with, the other components CAN'T make up for it. They can only contribute their own losses or colourations to the signal. BUT, if the source does reveal everything, the BEST that the other components could do would be to preserve that same signal and amplify it. Since we WILL have signal degradation due to line loss and impedance mismatches coming out of any source component, it is best to preserve the "precious" low level signal as best possible and then take the losses once it is at a level of abundance coming out of the amplifier. Make sense ??? Sean
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