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I saw this topic last Saturday, the day I became a newly minted Scott owner. It's the first amp I've had in a long time that had a loudness contour switch. Since getting it I've listened to it for extended period of time both ways and decided that I like it better with it on. I'm not religious when it comes to reproduction except that I am definitely of the opinion that tubes almost always sound better to my ear than solid state designs. Do whatever feels right to you. No one will report you to the sound police
I'll use loudness for when I'm using speakers at a low volume at my computer (not to disturb my roommates). Sometimes it just sounds anemic with it unbiased. Turning up the volume...i do defeat it and also when I listen to headphones on since it puts out too much bass (for my taste).
I follow a similar practice. It's always off if I am listening at a level that lets me hear everything. If I dial down the volume for some reason, and I notice losses in the fullness of completeness of the sound, I may punch the loudness.
I, alternately, might switch to may alternate speaker pair, if it seems to keep the sound together better at lower volume.
I listen to music professionally for a living! And, contrary to belief, it's not MY idea to kill all the dynamics in the music that leaves my facility. In fact, most of the material I receive has already been stepped on pretty hard before I even touch it.
I also added a 10" powered subwoofer to my vintage HH Scott system because there's a lot of 'oomph' down there that can really use some leveling when using smaller drivers. I control those levels with the Derived Center Channel Level knob. Very handy for orchestral/symphonies and both classic and contemporary jazz.