I think the question is not for Low Gain Mode.
Typically, an LNA has 3 modes, 1) high gain high linearity mode, 2) high gain mid linearity mode, 3) low gain mode.
Simply adds the bias current and lower down the loading impedance, you'll get a better IIP3 and IP1dB(input compression point).
Low gain mode is also known as "Bypass Mode", normally it is realized by simply a mos switch. It almost consumes zero power if we turn off the high gain circuit while the low gain switch is turned on. The problem is that, the switch connects two different impedance, so the reflection coefficient must be large if we didn't do something like M2 in the above figure. Namely, M2 is for matching purpose. And it is the most difficult part to design low gain mode, while we cannot modify the I/O matching network on PCB, and the S11 and S22 should be still low enough when low gain mode is on. Besides, the output node is a high Q node, it varies a lot as a kind of process variation. So M2 has to compensate for that and slightly loads the input signal. And at last, you have to find the optimal input match for high gain, low gain, and high gain noise match. With proper design(under SiGe), these 3 point could be superpositioned onto the same impedance. I proposed a modified version of low gain mode in a paper but rejected by the RFIC 2005 conference......
. It seems RFIC conference gets to higher level every year.
Besides MOS switch, another method called current streering was popular. But it suffers lower linearity and high power consumption compared to MOS switch. But it brings the possibility to make a Variable Gain LNA. Thus relax the specification of VGA.
While we decided to switch to low gain mode, it means that the input signal is large enough and possiblly the LNA would saturate mixer. So the intermodulation and noise is not the main problem, the main problem is mixer's IP1dB. If you have a incredible high IP1dB mixer, then you don't need the low gain mode.
Added after 22 minutes:
More, the high linearity and mid linearity are not meant to be swapped while the LNA is operating, because you never know when is the time you need a better IIP3 because there is no way to measure how much power are there in the adjecent channels.
And more, the low gain mode can't help you to withstand the IN-BAND BLOCKER. The special case is when wanted signal is very low and in-band blocker is very high. Because the wanted signal is small so we are still in high gain operation, so the in-band blocker is amplified by LNA and may still saturate mixer. Therefore to totally get rid of in-band blocker, the ultima solution is to modified the IP1dB of mixer.
The aboves point out the same thing that --- we are not able to sense the power in adj. channel because our AGC loop only estimate the power of wanted signal.