With increasing use of room eq, the channel balance (even between L and R) is becoming a non-issue as it is the first step done in that process. This channel gain is a hold-over from the older generation 2 channel analog only pre-dating any DSP use. Whether the analog circuits do it better for analog sources is a different debate. I am not sure how good it is doing by ear though.
Indeed - I recently installed an AVP with very basic DSP and menu-controlled programmable channel configuration options. I too, have no need for the mechanical controls offered by an old-fashioned stereo preamplifier. That being said, I like and respect Parasound, and knew some of the SF Bay Area audio old timers from the 50 years I lived there who wer acquaintances or friends of John Curl. However, like me (an expat living in Panama), our generation is approaching the end of ourr days. John Curl has contributed a lot to audio over the decades, but represents that older generation of old school audio. I read the transcript of the 1999 John Curl interview, and admire him for his research into the dynamic aspects of base-component performance in audio.
Like Harley Davidson, Parasound manufactures big, heavy, old-fashioned style products that perform well, but are being left in the dust as new compact and very energy efficient modern technologies take over the market. As my generation (the "Silent Generation", defined as those born between the beginning of the Great Depression and the end of WW2) disappears, and the numbers of the following generation of Baby Boomers decline, the market share for these "dinosaurs" of audio gear will likely fade slowly into obscurity.
I cannot afford - nor do I have the space for - separate stereo and AV systems, I don't want - or need - an "old-fashioned" audio preamplifier or hot and heavy Class A/AB like Parasound's offerings. I sold my last traditional preamplifier in 2005. I see no opportunity for Parasound's market share to grow, but their "old-fashioned legacy audio" products will probably survive for a while. There have been some comparisons with Schiit Audio gear in this thread, and I believe that as far as boutique audio products go, Schiit, with it's modern, compact amplifiers and preamps that complement their digital products, will thrive and grow as Parasound fades into obscurity and finally drops off the radar.
I am now 78 y/o - but blessed with good hearing for my age. Over my lifetime, I have watched the world of "high-fidelity audio" evolve from monaural vinyl and magnetic tape with point-to-point hand-wired vacuum tube electronics to microcircuit digital technology. Currently, I see three primary divisions in the world of modern of audiophiles - old fashioned two-channel stereo, multichannel audio only and/or HT, and "private audio" (headphones and earbuds for "listen loud, but don't disturb the neighbors" audio).
As many others here at ASR have stated, legacy preamplifiers are becoming irrelevant except for a small market of pre-digital source lovers - vinyl, radio, magnetic tape, etc. I share some of the benefits enjoyed by the younger generation by no longer listening to over-the-air radio or CDs or watching DVDs, but rather to streaming digital audio and video via the internet, and my collection of digital media files. Because of the possibility of noise and hum with computer-based hardware in the system, I now use balanced interconnects. I don't do wireless and Bluetooth, but many modern, younger audiophiles do. I have a very small room and only a 3.0 audio system, and recently "upgraded" from a stereo DAC/HA with volume control to a 7.1 4K AV preamp with basic DSP, because 3.0 channel units with similar features do not exist and I wanted a center channel for movie dialog enhancement - and it works!. I will soon be assembling my two Ghent/ICEpower 200ASC amps (one stereo + one mono) because the only decent 3-channel Class-D XLR amp is a $1,600 Ghent/Hypex Ncore NC400 kit - 3x the price of my Ghent/ICEpower pair. Then I will sell my big, heavy vintage Classé class AB power amplifier, and be "fully modern".