It's a topic well worth users of digital music to debate, whether it is better to use a pre amp, or rely on digital attenuation.
Sometimes a debate can become difficult when it becomes incomprehensible.
[QUOTE
The natural gain structure MUST be correct for digital volume control to work properly.
No doubt somebody will understand it.[/QUOTE]
The point is not too complicated. A power amp generally has fixed gain. This is not the same as the power spec. All amps with the same gain will (up to the point where they start to run out of power) amplify the same input signal by the same amount.
Active pres also tend to have gain, whereas a passive pre will generally only reduce the output of the dac (or other input).
If you have a lot of gain in the system, then a full (2v plus) dac output will map to deafening output. If your actual listening level is sane then you will need lots of attenuation. This is silly- it's a bit like having your foot permanently down on the accelerator so that you need to much harder on the brakes.
This is silly whether you use digital attenuation or analog attenuation, but the silliness of it with analog attenuation doesn't tend to bother the sort of people who prefer analog attenuation, whereas people tend to make a lot of fuss about it in relation to digital attenuation. Either way it makes more sense to reduce the gain after the volume control either in the dac output, the pre amp or in the power amp.
In many ways it makes most sense to reduce the gain at the end. This is because it will amplify everything upstream (eg, say, noise in the Dacs output stage or picked up the cable between the dac and power amp).
Putting this together.... It is only because of high (and probably unnecessary) levels of gain after the dac that you need to have high levels of digital attenuation. If there is less gain after the dac then it can be run at a higher level.
This is common sense even if (which is probably the case) there is nothing wrong with digital volume controls. (think about the analog noise amplification).