How important is the pre-amp?

Hello all,

Genuine request here for other's experiences.

I get how power amps can make really significant changes to the sound of a system. And of course speakers have an even bigger effect. And then there is the complicated relationship between the speaker and power amp. But I wonder about pre-amps.

In theory a well designed preamp should just act as a source switch and volume control. But does it add (or ruin) magic? Can a pre-amp color the sound? Alter pace and timing? Could you take a great sounding system and spoil it with the wrong preamp? Stereophile once gushed (while reviewing a preamp that cost as much as a car) that the preamp was the heart of the system, setting the tone of everything. Really? Some people don't even bother with a preamp, feeding their DACs straight into the power amp. Others favor passive devices, things without power. If one can get a perfectly good $2K preamp, why bother with 20K?

What your experiences been?