This has been a debated topic. In short, there are suddenly two places to adjust the overall gain -- the source volume and the amplifier gain setting. Some (many) people will turn the gain all the way up or to some arbitrary level and then turn the source unit volume way down. This may incorrectly be seen as a good thing -- that the system is very loud at a low volume would imply it would be much louder at a higher volume. In reality, it just gets more distorted.
However, if you normally keep the volume low/moderate, eg -10dbFS, then the signal to the amplifier may not be high enough to give desired output when the gains are set to avoid distortion in the absolute worst case. In this case you should not generate excess distortion due to clipping. so this setting should be "distortionless" an not "half distortion". Of course this only accounts for clipping -- the speakers, ears, and environment may have various stress levels or imperfections that introduce distortion.
You also want to be able to adjust different channel's relative acoustic levels if you have separate amplifiers for subwoofers and other speakers.
Finally, most speakers have no problems with small levels of clipping. It is worse for tweeters in some cases though. In the automotive audio field, many prefer louder bass even if there is a tiny to small amount of distortion. For woofers, there is a myth that any amount of clipping causes the speaker to seize up and overheat.
Voltages (again, in the automotive audio field) need to match the source because there was not a standard level for line-out-converters or source units. Some people will also buy 8V line drivers in a belief that the amplifier will have less work to do and thus run cooler. The voltage amplification portion of the amplifier is tiny and uses almost no power in comparison to the current gain stages of the amplifier. As a result, though, amplifiers need to accept a wide range of inputs.