Ok... Thanks for all of the advice and support here. I decided to pull the trigger and I managed to get a "buy it now" one of these things (the same Niles model that I mentioned before) on Ebay for just $22, including shipping. I saved myself some money (the local Craigslist seller wanted $50 for the thing) and some hassle as the location was a fair drive from where I live.
I figure that for $22 I don't have much to loose because even if I don't end up likening the way that this thing works, I haven't wasted that much money on it and I can probably even sell it on Craigslist and make some of my money back anyway (not that $22 is much of a hardship). I do like the elegance of being able to access any function on my stereo with a button or knob on the amp, but at this point I already have a component switcher box and separate phone pre-amp box... so what's one more thing?
Any time you introduce L-pads into the equation, you loose damping. My selector has the ability to attenuate the two speakers either at the line source (potentiometers) and/or at the speakers (Lpads). When the Lpads are switched in, bass takes a definite hit as it looses its "tightness" on the JBL L300s.
Will you hear this on your speakers using that system...