First, the ability to compress volume but not dynamic contrasts is somewhat dependent on one’s audio system. My Von Schweikert VR9 SE mk2 speakers and my higher end equipment in a superior listening room permit me to achieve great dynamic contrasts at various volume settings.
Second, it’s not true, Digital has the capability of superior dynamic contrasts to LPs. This is generally not implemented in pop, rock and often classical CDs/digital recordings/re-mastering. My EAR 912 pre-amp has meters which indicate dynamic contrasts. So often I’m listening to rock or an orchestra and the meters only move up to -15 or -10 db, mostly at -20db. The majority of my jazz CDs move the meters quickly up and down to near -0db. Same with LPs wherein certain labels have great dynamics and others are bland and move very little. It's not just a matter of compression but also recording techniques.
Third, I agree that different types of music and recordings should be heard at least at a particular volume setting. I have the ability to listen to music very loud yet still composed and low in distortion (those speakers-wow)!. I can relax with Mozart piano music at relatively low levels yet don’t want to hear the Fireballs or Takeshi Eerauchi and the Bunnys at less than loud volume.