Speaker that sounds good at low volumes have a dip through the mid range, or elevated bass/treble, which is inverse to our hearing sensitivity. As in we need more bass and treble at low volumes for things to sound equal to the midrange.
When you turn the volume up, they become unlistenable, as the treble and bass now become too much.
Having a neutral speaker and a loudness knob is the preferable option. If you turn a neutral speaker louder, it sounds better, but when they're played at low volumes, they're less engaging, because the perceived treble and bass is missing.
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