Al: In this case, lowering the cartridge output (or reducing the gain for that matter) would indeed result in John having to run the volume pot higher with phono, but as you point out in your last paragraph that is only an issue if he's running full out on the volume pot of the integrated and that is (and IMO won't be the case with a reduced gain of 3 db at the phono stage) not the case.
IME, the noise or hiss that he describes is totally consistent with too much gain at the phono stage. In effect, the phono stage is either on the verge of being overloaded, or is being overloaded by the cartridge which has too much output for the amount of gain on tap. That manifests itself in the hiss which he's describing as well as a bit of hardening up in sound quality and a collapse of soundstage, particularly front to back.
Not having enough gain can also create noise problems as well as totally squashing dynamics and giving the effect of listening through about 3 wet blankets.
Particularly with low output MC's having outputs in the .15 to .35 mV range, dialing in the gain is critical. Get 3 db in either direction on the wrong side at the phonostage and you have problems, 4-5 db wrong or more and it's not worth listening to. And those problems cannot be rectified further on down the line than the phonostage.
Changing tubes may indeed help. I don't have much experience with tubes to be candid. But I would expect that if that was to help that the tubes themselves might, in fact, be altering the overall gain that the phono stage is ultimately providing.
I would be curious to hear what Lloyd Walker would recommend in this situation, but I do think it is a gain issue and that the phono stage has too much gain for the cartridge being used.