Fixed volume vs volume limit

Am I correct in thinking, that the issue of volume, limit and output level only applies when Line Out is selected. I play mine using coax and let the speakers do the D/A conversion, so don't have the volume limit option.
Its all volumes as I have one box connected via optical and volume still variable
 
If I use the line out there is no analogue volume control right ? That means the volume control digitally alters the signal that is sent to the Wiim internal dac correct ? So adjusting voltage level can only be done by the preset settings (0.5,0.8,1,2vrms) in the analogue domain and not by the volume control ? I cannot achieve for instance 1.5v voltage in the analogue domain of Wiim without reduction in bits …
 
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