I find a definite improvement using the high gain side of the switch on my 4B-SST² amp, even though I am using the balanced inputs. (I tried the RCA inputs just to listen.. not great at 7 meters, but my amp is seven meters of wire away from the preamp, and a balanced IC sounds better.)
The sound is just cleaner with the higher gain set. (greater clarity, slightly less of a veil)
True it leave less room on the volume control. But the tradeoff is worth it, to me.
This sort of thing is what the listener hears makes the rule. And not anyone theory.
For me, the higher gain just sounds better. For someone else, with different ears, the other way might be thier choice.