Mapman, I agree, the problem is this: distortion, in the form of exaggerated 5th, 7th and 9th harmonics (compared to the original sound) **masquerades** as 'dynamics'.
A simple way to tell that a system is lacking this distortion is that you can't tell how loud it is, until you find that you are shouting to talk to someone sitting right beside you.
Oh, and FWIW, soft clipping does not reduce the loudness cues. Its just more likely to not distort them as much. However clipping in any form is to be avoided, so we are talking about how the loudness cues may or may not get distorted when the system is not clipping at all.
A simple way to tell that a system is lacking this distortion is that you can't tell how loud it is, until you find that you are shouting to talk to someone sitting right beside you.
Oh, and FWIW, soft clipping does not reduce the loudness cues. Its just more likely to not distort them as much. However clipping in any form is to be avoided, so we are talking about how the loudness cues may or may not get distorted when the system is not clipping at all.