Whilst researching my issue of whether to use the speaker-level signal to feed the amplifier (whci is the most cost-effective one for me) I chanced upon this beautifully expounded essay which appears in
http://www.8thcivic.com/forums/i-c-e...question.html:
"As stated, in theory, the high level speaker signal is cleaner and more powerful than a standard unbalanced, low level RCA connection for two main reasons.
First is input voltage. A basic LOC is as you stated, merely a resistor type device which does two things - steps down voltage to a usable level by the amplifier input circuitry, and unbalances the signal for use with standard RCA inputs. You can make one pretty easily using a few parts from Radio Shack (which is why they tend to cost between $5 and $20 bucks). In electricity, Voltage is analogous to pressure in a hydraulic system (everyone always uses fluid mechanics to explain how electricity works...), so stepping down voltage is the same as lowering pressure. As you step down voltage, the audio signal is pushed with less pressure through the cables, and therefore needs to be stepped up more by the device at the end in order to generate the same level of output. The bad part is that this increased step up factor also applies to any noise in the signal, which raises the effective S/N ratio (obviously a negative outcome). However, while higher voltage is indeed better for signal transfer and reducing noise, the input stage on the amplifier only allows for a certain level of adjustment – meaning that if the input signal voltage is too high for the design of the unit, the adjustment on the gain cannot compensate for the high input voltage, and the output signal will be clipped, even with the gain all the way down. So when you use signal from the high level speaker cables (Which is typically much higher voltage than the signal coming out of the RCA pre-outs) to power a device designed for an RCA input signal, you need to step down voltage to a usable level... which is part one of the job of the LOC. Often times the LOC is designed to step down voltage by a factor of 10 to 1, meaning that ten volts in becomes 1 volt out. That explains part one.
Part two involves understanding the difference between a balanced and an unbalanced signal. These terms explain how the "-" portion of the signal is handled (more specifically, the impedance of the "-" side relative to the "+" side). Balanced signals utilize a separate return path for each channel, plus a ground for the device. Each speaker has its own "+" and a "-" wire when you are dealing with speaker wires, aside from the ground. In theory, this balanced flow of impedance should even out any discrepancies in the signal by splitting them between the paths. A standard unbalanced RCA does not allow for this. Standard unbalanced RCAs utilize a single signal wire connected to the inner prong that handles both "+" and "-", and are grounded through the outer casing. Since the ground impedance then becomes a factor of the cable length and resistance, and is not necessarily the same impedance as the input signal, you have the potential for the outer cable shield to pickup extraneous voltage on the ground side, creating a small amount of current. This current is not part of the audio signal - AKA, "noise".
You can cheat ways around this, either by "lifting grounds" on some of the devices (not a great solution, safety wise especially)... or by using a transformer to break the ground signal (neat byproduct of transformer operation that happens to work well for audio use)... Thus creating the a market for "balanced line drivers" for use in SQ systems.
While some high end car audio head units and processors utilize balanced line signal technology in their interconnect systems, the average RCA connection on 95%+ percent of car audio equipment is setup for an unbalanced signal. Why? It makes more sense when you consider the evolution of the "RCA cable". Around 1940, RCA initially developed what we now know as the standard "audio interconnect" as a means for connecting record turntables to receivers in home audio systems. These systems ran on 110V AC current, and the cables were used only for very short runs. Under these conditions, the potential for noise was far less of a concern than in the automotive environment. For whatever reason, the "RCA" took off with soaring popularity, and quickly became a standard for connecting all types of electronic equipment - including car audio. Naturally, since most larger companies aim to maximize the compatability of their products with those already in the field (to increase their potential market), you wind up with almost everything utilizing a standard, unbalanced RCA signal. This is just how things have come to be. Not that its the best by any means, but like I said previously, most people don't know that.
With regard to your statement about the "amplifier in the head unit coloring the signal and adding distortion", bear in mind that in a typical head unit, the signal coming out of the RCA jacks is the same as the speaker level signal... its merely stepped down in voltage (The voltage for the RCA pre-outs has to come from somewhere...). Going back to part one, we now know that it contains the same characteristics of as the speaker level signal - except that since its lower voltage, it needs to be stepped up by a larger factor at the external amplifier - meaning overall S/N Ratio decreases (which is one reason why people use line drivers, and Hi-Volt head units - to try to counteract this). It is for this exact reason that you should never try to power speakers with the head unit's internal amplifier if you are using the pre-outs to drive external devices. Since the pre-out signal mimics that of the head unit's internal amp, powering speakers with head unit places a load on the amp, increasing distortion, and if the signal is clipped, transferring that clipped signal through the RCAs to your other equipment (Hope all you guys out there telling people to run their rear fill off of the head unit are reading this...). This (along with added space for larger and more spaced/ insulated components) is a primary reason why most of the really high-end decks don't offer speaker level amplification. However, without the added load of powering speakers placed on the internal amplifier, most "decent" quality heads offering speaker level amplification will produce minimal distortion and not clip the signal through the RCAs, even at full volume (assuming all processing is off or flat). So don't think you "need" a head unit without speaker level outs to produce reasonable SQ..."