Why is a preference for distortion and/or coloration utter nonsense? What is wrong with prefering it. Distortion is measureable, not a subjective gremlin, what if you also happen to like the the piece with more distortion? How many folks have loved CJ equipment over the years knowing full well it was colored, but in a very satisfying way.
What I do suspect is that the signal from the source output is closer to the signal coming from the LSA output than if the signal must go through an active linestage. One might differ on whether this is what we should want, or what we should prefer, but I think (not 100% sure) that this would be measurably the fact of the matter, measurably truer to the source (meaning the CD player output, not the live performance). If the active linestage alters the relationship between the two (source ouput/preamp output) it is inarguably a distortion (and not true or part of what is exist in the signal at the source output connection) -- which you might very well prefer.
Carver's Hologram generator sure did unflatten a soundstage, but it was no part the recording, it was an effect, an artifact created by altering the source signal and delivering something different to the amp. And it may be lovely, enjoyable, pleasant, wondeful, magical, mysterious, etc. - but whatever it is, I just don't see how it can be said to true to the source, true in a measureable and meaningful way - assuming what we measure is relevant.