Thanks for the thoughts petg60 - Your logic makes sense. I can see manufacturers cutting costs on non-essential items to remain competitive. And, I do use the tone controls on my system without loudness. Doesn't have the same effect but helps.
Thanks atmosphere - appreciate the detail. I've had loudness variable type (on a McIntosh 4300V receiver) and the switch type on my current McIntosh C41, as well as many vintage Pioneer/Concept models in my youth. It definitely colors the sound once the volume is increased. But at low volumes I still find it adds value to the music.