@Upstateguy:
I'm not sure about the Fuze's output level, but if clipping is occurring on high gain it will occur at any setting of the volume pot. The problem isn't in the output stage, it's the input stage that clips: by the time the signal reaches the pot the clipping has already occurred. This can only be fixed with either switching from batteries to AC if you are using the former (which I don't believe you are) or by swapping the gain resistors for a lower amount of gain on the high-gain setting. Apologies if you have already said, but high gain is 6.5X presumably for your amp?
I'm not sure where this deterioration with higher volume settings could come from: the only explanation would be if you are using a borderline voltage (12VAC under load) AC adaptor. This can cause the power rails to drop out of regulation at higher volume settings, which increases distortion, albeit not by much (opamps having a stupidly high PSRR).
The limitation is a compromise for price and size reasons, as I understand it. However, the first problem at least (the second problem not existing AFAIK with a decent AC/AC adaptor) will be fixed in the forthcoming desktop version.