All speakers have a little EQ built in

It affects the sound alright...It fixes Bad recordings......Listened to a Doors Live album last night...Weak bass and a little bright....Loki fixed it...Sounded great and great music that’s now very listenable when it Wasn’t before. Makes sense....yes and it doesn't affect the sound when you turn it off and the signal just runs thru the turned off unit...that's the way Schiit designed it..call them.

Although many people attest that the analog EQ does not alter the sound trait in general, I am suspecious if that is true. Essentially, all analog equalizers were electronic circuits with inductors and capacitors which shift the phase of AC signals passing through them to alter the frequency response in different bandwidths. These physical electronic components have the potential to influence sound quality as @mashif has mentioned. For instance, a larger capacitor tends to perform better than its smaller counterpart, producing a bolder and cleaner sound.

On the other hand, the PEQ allows for the adjustment of the Q factor, enabling tone shaping. In contrast, analog EQ is fixed with a Q factor usually set around 1.5. When used judiciously, the digital EQ tool tends to do a better job of tweaking the sound to my liking compared to analog EQ. I rarely notice any degradation in sound quality with the digital EQ.

@mbmi 

When I auditioned it, I primarily used the low end adjustments but unfortunately it also affected the high end, making bright recordings sound brittle. And I’m not going to use an equalizer to correct problems introduced by the equalizer. I was disappointed. High quality equalizers shouldn’t do that. 
 

@lanx0003 

Digital eq is the way to go for most. Studio quality PEQs can sound great but are best used for production, not reproduction. Most studios stopped using room eq long ago because of the issues you mentioned. 

That’s one of the cool aspects of outboard actively configured speakers and controlling the filter parameters with an external DSP at the listening position, on the fly from your network connected laptop; every filter tweak here is done via the already installed digital crossover, so no added tone controls other than what was there actively to begin with - in the digital domain, and with all filter parameters at your fingertips to be adjusted individually. I still prefer going about the settings manually with the aid of measurements, but with a good microphone and digital correction software this can also be done "automated" in both the amplitude and time domain. Have a bunch a presets made, and compare the different equalizations/adjustments to each other. That’s "tone controls" par excellence from my chair.

The prime takeaway here is tailor fitting your speakers to your room and your taste from the sweet spot. Vital aspects of setting the filter parameters aren’t "taste" per se, but the minute fine tuning from that framework I believe mainly is, and is where those subtle treats are found. I’ve never much cared for slightly tilted up highs and lows (kind of a mild loudness effect) which may evoke a "likeability" to the sound, certainly at lower to moderate SPL’s, but is rather more drawn to absolute coherency and a strong center core/sphere - perhaps something akin to (a more hypothetical) widebander or Quad-like ESL (i.e.: acting as a point source) on mean steroids, or the "musical monitor."

Although many people attest that the analog EQ does not alter the sound trait in general, I am suspecious if that is true.

@lanx0003 - Fan though I may be of tone controls, this is not the blanket statement I would make. There are in fact bad tone controls and bad EQs. Sometimes this happens when a manufacturer takes excellent care in the audio circuit, but skimp in design on the extra parts for the tone controls. I had a Parasound P7 that was like this. An otherwise excellent multi-channel pre with a veil that would come over it when tone controls were engaged.