I assume you are using a 7T. If so I think the hi/lo switch is related to the phono preamp. I do not remember such a switch on the 7 (or 7C, the tube preamp, as some call it).
As for the 15. The light is a part of the circuit to to prevent amp damage in the event that you clip the amp. It was to allow what we'd call a soft clip and was of the same idea as the McIntosh Power Guard introduced later except Mc is more sophistocated. Having had numerous 15s (both early and late production versions), yes I did clip the amps and get the lamps to light. It is impoertant to make sure the lamps have continuity as if not then the amp can easily self-destruct on clipping. It was a problem with the early 15s, and cured to a degree with the later 15s and for the most part the 16 reduced further and with the 16B the design finally was as stable and not any more prone to self-destruction than any other design of the time.