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Chris93, while I agree with the electrical engineering theory of what you posted. Try this experiment, take a mic in a fairly live room, open the gain all the way, record it, then halve the gain, record it, then halve it again, record it. You should find wide open you will hear the whole room, at each halving of gain your “world” will shrink making sources father away fainter less prominent in the recorded “mix” making the mic “sound” intimate and selective to the source to the source.

To all running a pre-amp hot is wonderful if you are looking for a harmonically rich content, many pres can even be clipped slightly red lights and all and you will not hear the distortion, only a warming, this is very true when the slew rate of the pre exceeds the psycho-acoustics of the human ear and allows it to recover before your ear can detect the hard part of the clip. This was an 70/80’s trick to massive sounding rack/floor toms. I saw an interesting demo of this way back maybe 30 years ago when chipsets got faster and have used it to good advantage many times! That said harmonically rich is not always the proper mode for all music and instruments

Digital clip is another matter, and really not to be induced, if you like your job at FOH…