I think the point is not how quiet the fade out, or silence between tracks is but how quiet the quietest bit of actual music on a recording is.
That is the real thing determining how much dynamic range the playback system actually needs.
When I'm ripping LPs, I have to crank the volume way up in headphones to be sure I mark track boundaries after the fade-out is really done. Even in headphones, if the peaks are tolerable, I can't hear all of the fade-out. And that's with vinyl, where the noise floor obscures the fade-out at only -65ish dB FS (probably not that good with most LPs, and certainly most LPs that I own).
The question is how much of the fade-out must we hear? Once we can no longer hear it, the fade-out has done its job. Fade-outs are recording-studio tricks because the usual live-performance rock-music ending--everyone riffing and looking at the drummer until he telegraphs a big final crash--gets a bit boring on a recording.
Of course, the only fade-out for many genres of music is the reverberation following the final note.
Rick "whose listening conditions preclude hearing those signals below 12 or 13 bits" Denney