Kr4...There you said it!! "If the VC is digital (and, therefore, loses data when attenuated)...". Maybe you could explain how data is lost. It doesn't have to be so.
If the data was left shifted the LSB would indeed be lost, but the remaining bits would be worth half their original voltage, and no digital volume control I have heard has steps that large.
If the data was left shifted the LSB would indeed be lost, but the remaining bits would be worth half their original voltage, and no digital volume control I have heard has steps that large.