ProtegeManiac
Headphoneus Supremus
Though I wish I could clearly picture your Gundam analogy, I can only imagine the outer shell of a generic Gundam for now I watched Gundam 00 long time ago by my friend's recommendation, and I thought it was decent. I'll probably give seed and destiny a try when I get the time
Just think of how the cockpit controls look like where the one thing consistent through nearly all the different series is that there are throttles (as in on a plane) on either side of the pilot's seats (transformable mobile suits have an alternate joystick when in fighter form) that controls the arms and torso. If you remember the fight scenes, when the pilot gets angry or whatever and lunges forward you'll see his whole torso lunge forward as he moves both throttles forward (and then cut to the mobile suit moving forward), other times flying with the left (sheild) arm forward then the pilot suddenly throws the right throttle forward (and presumably moves the left throttle backward) and the suit is shown to suddenly swing the shield aside, torso twists, right arm thrusts forward with a sword (or spear or halberd, whatever each suit has), etc. Gentle push on throttle = gently reaching out; violently pushing throttle forward = act of violence by (usually the right) arm.
It's like a with a knob - twist right and you get max volume, twist left and you get nothing (or imbalance). Volume + and - buttons work differently - press one and the adjustment starts out gradually then goes faster as it realizes, albeit slowly, that you want to go all the way.
I still don't really understand question 4 though, how does lower-than-optimal? voltage on a DAC make lower gain on an amp better?
DAC output signal is input signal into amp that will be amplified. The lower the voltage of the input signal, given the same amp and headphone downstream, then the output in dB will be lower. If you have imbalance until 9:00 on the dial but that's too loud with one DAC, then a lower voltage input to the amp would make the final output lower, thus you can move the volume knob higher and get past the imbalance zone. This still depends on other factors however as 1.5V vs 2V might have appreciable differences on that amp and headphones, but not necessary 1.2V vs 1.5V.
So in a very simplistic sense, think of it as XY(Z) = A (note that this is an extremely simplistic representation) where
X = input signal voltage
Y = amp gain and power
Z = headphone sensitivity
A = actual output in dB
So basically, assuming the amp and headphone are constant:
Schiit Modi2 Uber : 1.5Y(Z) = A*
Fiio Q1 : 1.2Y(Z) = A**
A* > A** at the same volume setting until max, so you can now turn it up the point where there is no imbalance in the potentiometer but the resulting output will not be as loud as when using the 1.5V Modi2U.
That said, again, if the Modi2U at 1.5V is waaaaay too loud for you at the balanced signal point, going down to 1.2V might not be guaranteed fix.
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One other thing though - are you sure you have this switch set to "Low?"