Hi Taters,
interesting point you make. This seems to play right into my notion that higher cart output 'empowers' the phono-pre :-)
I found this to be true using MM! carts. (Raul of course knows there is more to it still).
I also can now safely presume that the Audio Research Ref 2 mk2 has no input gain adjustment?
My ML-326S goes 0dB, 6dB, 12dB, 18dB up. This type of feature would make up very easily for the missing 6 or 12dB gain.
In fact, I use the 60dB phono-modules setting with the 0dB input gain of the line-pre and run 3.5 - 5mV MM carts into it with no overload issue at all. And it DYNAMIC, as you would suggest.
So, a lot depends on equipment 'flexibility'. Your point on loosing dynamics is something I can put into my 'database'.
Good luck,
Axel