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It decreases the gain on everything else.
Meaning that when you hit that classical song in your collection, those peaks drive your amp to its limit and blow your speakers rather than just clipping digitally.
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I'd like to hear how it could be better, honestly, other than by opening a can of whoopass on all the producers and engineers who've decided that we'd prefer our music to be louder at the expense of dynamic range.
I agree. The only other solution is additional dynamic range compression above and beyond what's already been applied to the music. Which comes with its own set of problems of course.