I'm taking the variable output from my Steelhead into my Pass X1 preamp. It sounds fine.
Notably, I am connecting my Sony SCD1 through the Steelhead, as well as directly. I mean, the balanced output from the SCD1 goes directly to the X1, while the single ended output goes to the Steelhead as a switch selectable line level input. By switching inputs on the X1 between the direct feed from the SCD1 and the Steelhead feed, I can compare the sound of the SCD1 going through the Steelhead (including the volume control) versus the direct feed using balanced circuits.
First, I noticed the volume via Steelhead was lower, even with the Steelhead volume control turned up all the way. When I inquired, Manley pointed out that balanced circuits typically will have bigger voltage amplitude and sound louder than single ended circuits. Also, the Steelhead circuitry imposes a slight attenuation.
Second, I can hear what sounds like better dynamic range and a darker background. The sound seems more lithe and natural. As a result, I now do all my serious SACD and redbook listening using the SCD1 via the Steelhead. (The main drawbacks so far are the gradually increasing need to replace the tubes in the Steelhead -- not a real concern, and having to wait for the Steelhead's delay circuit to kick in -- not a real issue for someone who is used to waiting for the SCD1 to load.)