For those interested, here's the article from PassLabs talking about feedback vs no feedback. Forward to Figure 11. It shows feedback reduces the overall distortion but has more higher order distortion which the ears are sensitive to. This is another example in which something measures well but it creates higher order affect which can be difficult to quantify and not always obvious in real life.
http://www.firstwatt.com/pdf/art_dist_fdbk.pdf
http://www.firstwatt.com/pdf/art_dist_fdbk.pdf
Negative feedback can reduce the total quantity of distortion, but it adds new components on its own, and tempts the designer to use more cascaded gain stages in search of better numbers, accompanied by greater feedback frequency stability issues.
The resulting complexity creates distortion which is unlike the simple harmonics associated with musical instruments, and we see that these complex waves can gather to create the occasional tsunami of distortion, peaking at values far above those imagined by the distortion specifications.