@ghdprentice I never heard that one... It is definitely not true in my experience.
Do you use a potentiometer volume control? Most people do.
Your amp runs full open and the voltage must be REDUCED to normal listening levels. Any type of potentiometer 'applies the brakes' to this signal by restricting voltage and losing resolution in the process. So, as you turn up the volume you are releasing the brakes allowing more signal to flow and sounds better.
A pre-amp with lots of gain takes the 'reduced resolution signal' and then amplies it. You get loudness but with distortion added. Some people like the perception of added dynamics. I don't.
A potentiometer directly affects the voltage level of an analog signal by acting as a voltage divider, while a digital volume control modifies the amplitude of a digital signal without introducing any additional noise. So, newer, more expensive digital volume controllers seem to be prefered in higher end gear.
So, if you use a potentiometer the higher the knob the better.