tom I think the part of this theory you are missing is that your overpowered amp isn't used to its full potential. That is what I have always learned.. Use each of your components at 60-80% but never max out.
When setting up my audio in a car I set the amp to 25% or so, then turn the head unit to about 80% of its volume scale. With a song playing I slowly increase the gain on the amp until I hit the loudest volume I would potentially listen to. Any distortion what so ever and I back the amp down until distortion is completely gone.
An amp rated higher than the speakers gives a lot of room to adjust..
Some folks prefer to set their equipment up at normal listening level and 50% volume on the head unit, but I like making sure when doing a demo or just rocking out I won't be doing any damage with distortion
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