1) Yes, I suppose it can. If you prefer a larger signal amplitude, run it through a power amp.
2) Yes. I do it at line level (with phonostage disconnected). For current mode, I short the secondary windings together. Typically an MC stepup tranny will have 1000 ohms ESR in the secondary, so the current isn't actually that high. But it does tend to put some flux into the core.
jh
