There are many reasons why you may experience a "washed out" SQ with higher volume levels, in your system. But keep in mind that a volume control is an attenuator; it is not adding gain as you turn up the volume. It is attenuating the output of the device less and less as you go toward the max volume. The tubes and transistors upstream from the attenuator and which are responsible for "gain" are always operating according to a fixed set of voltages and currents, producing in the device a fixed signal voltage (until you get to the attenuator) with an inherent signal to noise ratio. As you employ less and less attenuation, not only do you get more and more signal voltage to drive the amplifier, but also you are permitting more and more of the noise floor to drive the amplifier. So, the end result is that you begin to hear the noise, albeit it is way down below the signal voltage by the same ratio in db that is inherent to the device. As to why you feel the sound eventually acquires a "washed out" coloration, that is a complex question that is probably the net result of many factors.
A cathode follower is an active device that has very very low distortion and adds no gain. Its raison d'etre is to convert voltage to current, which is another way of saying it sees a source (the upstream circuitry) that has a high output impedance and it puts out the same signal (no added distortion, ideally) with a low output impedance so as to drive the downstream amplifier. That's one definition of a "buffer". The buffer function is very necessary for any linestage, whether it includes circuits that add gain, or not (as in the case of the Steelhead). The low output impedance is very advantageous for driving any amplifier (see also below).
What fsonic and maybe Dover mentioned is another class of "linestage" that is completely passive in that such devices contain no active components at all (no tubes or transistors); they are basically just attenuators. This can be done with a resistor network or (better) with autoformers or transformers. The problem created is that you need to match the output impedance of the device driving the passive attenuator with the input impedance of the downstream device. The rule of thumb is that the output impedance of the driver (in this case, the passive attenuator) should be about 1/10 the input impedance of the driven component, in ohms, and this ratio should be consistently maintained at all levels of attenuation. (This criterion is easily met by the active CF to be found in the Steelhead.) It's not so easily or universally achieved using a passive attenuator. Therefore, passive attenuators need to be carefully selected and matched to the up and downstream components for good results. Many aficionados do swear by passive attenuators as linestages. I am not in that camp.
A cathode follower is an active device that has very very low distortion and adds no gain. Its raison d'etre is to convert voltage to current, which is another way of saying it sees a source (the upstream circuitry) that has a high output impedance and it puts out the same signal (no added distortion, ideally) with a low output impedance so as to drive the downstream amplifier. That's one definition of a "buffer". The buffer function is very necessary for any linestage, whether it includes circuits that add gain, or not (as in the case of the Steelhead). The low output impedance is very advantageous for driving any amplifier (see also below).
What fsonic and maybe Dover mentioned is another class of "linestage" that is completely passive in that such devices contain no active components at all (no tubes or transistors); they are basically just attenuators. This can be done with a resistor network or (better) with autoformers or transformers. The problem created is that you need to match the output impedance of the device driving the passive attenuator with the input impedance of the downstream device. The rule of thumb is that the output impedance of the driver (in this case, the passive attenuator) should be about 1/10 the input impedance of the driven component, in ohms, and this ratio should be consistently maintained at all levels of attenuation. (This criterion is easily met by the active CF to be found in the Steelhead.) It's not so easily or universally achieved using a passive attenuator. Therefore, passive attenuators need to be carefully selected and matched to the up and downstream components for good results. Many aficionados do swear by passive attenuators as linestages. I am not in that camp.