Loudness switch really is only used on receiver, integrates and just a few preamps. Normally also in line with the Japanese manufacturing and during the 70s early 80s. This was a time when "More" was better, receiver wars, and how many buttons and switches can we cram into one box. Some people equate more switches, buttons and bobbles to more performance and that carried over into AVR as well as stereos into the 80s. Hell even our TVs have easy to switch sound effect buttons to push without any knowledge of what one changed to get that effect.
As humans we acquire a taste to what we like in sound and flavor. Some people like the bass so high when driving around every part of there car is vibrating. Or TV doesn't sound right unless sound is hitting them at different times at all angles and then all of a sudden big rumbles. This is all effects and manipulation to the sound and minds perception of the sound. Give a human five buttons to switch the sound and they will pick the one they like the best at that time. The problem with this is "at the time" since our hearing and mood changes and then we acquire a taste over quality of the recorded sound.
When one starts learning about audio, they learn that the shortest signal path sounds the best. They learn by listening to the sound that's happening, hearing the filtering. They hear the corruption of the signal though many circuit and switches. They learn that the quality of sound does not equate to more switches, buttons and bobbles.
As humans we acquire a taste to what we like in sound and flavor. Some people like the bass so high when driving around every part of there car is vibrating. Or TV doesn't sound right unless sound is hitting them at different times at all angles and then all of a sudden big rumbles. This is all effects and manipulation to the sound and minds perception of the sound. Give a human five buttons to switch the sound and they will pick the one they like the best at that time. The problem with this is "at the time" since our hearing and mood changes and then we acquire a taste over quality of the recorded sound.
When one starts learning about audio, they learn that the shortest signal path sounds the best. They learn by listening to the sound that's happening, hearing the filtering. They hear the corruption of the signal though many circuit and switches. They learn that the quality of sound does not equate to more switches, buttons and bobbles.

But, sometimes cranking "to 11", establishes a whole new level of physics, yet unexplainable by science! 
