Therefore even though the signal is attenuated almost all the time I am getting the benefit of an active preamp, would you agree?
Yes, certainly. Although there are some rare exceptions, nearly all active preamps have the volume control mechanism at a point in their internal signal path that is "ahead" (upstream) of their output buffer stage. So for nearly all designs turning the control down will have no effect on output impedance, and will not convert the active preamp into a passive one.
Which is not to say that the setting of the volume control won't have any effect on sound quality, particularly if it is set to introduce a lot of attenuation.
When cranking up the volume the noise I hear is pink in nature. I won’t call it pink, since it covers a limited frequency spectrum, It seems like all frequencies are being crossed over to the tweeter. I have no buzz or hum
So it sounds like the ground loop effects I indicated as a possibility are probably not a significant factor. A simple way to verify that, though, would be to use a "cheater" (a 3-prong to 2-prong adapter) to temporarily isolate the AC safety ground pin of the power plug of either or both of the components.
Some minor corrections to your math. With respect to the amplifier, what is directly proportional is the relation between output voltage and input voltage. Therefore output power varies in proportion to the square of input voltage. So 0.28V in would result in about 61W out. Also, 125W/87.5W is about 1.5 db, not 3.1 db. 125W/61W is about 3.1 db. For a given load, as you probably realize:
db = 10log(P1/P2) = 20log(V1/V2), where P is power and V is voltage.
Also, keep in mind that 0.28 mv represents the output of the cartridge under specific test conditions, and that figure may reach significantly higher levels on the peaks of some recordings, as well as often being at much lower levels.
Continued good luck in your experiments! Regards,
-- Al