It's virutes are transparency and lack of coloration. It's shortcomings are timbre and dynamics but you have to spend perhaps 10X or more $ to substantially improve on the LSA.
I would say I can agree if the second half of your statement was attributed to passive preamps (a well designed TVC the exception) in general. I find in my system the LSA does not lack in timbre and dynamics. For reference I use the LSA with the Music Reference RM-10. My other system is Atma-Sphere MP-3 and S-30 amp. Sources are the same for either as are speakers. I could live with either of these amp/pre combinations, one costing about 5x less as the other. Sure there are differences in the sound, but they are much more similar than different. Ironically I found a combination of the LSA and S-30 to be less satisfying, although still enjoyable. It tided me over just fine while I waited on my MP-3.