Hello David,
This is a great question, I'm glad you asked!
Let's make some assumptions about an imaginary system. Let's say you have a DAC with a 5V output and a power amp with 10K input impedance.
Now, let's say you have a tube preamp with 1.5V of bias, high input impedance (100K) and low-ish output impedance (1000 Ohms)
If we move the volume control to the output, here's what happens to the preamp.
1. The 1.5V of bias means that the 5V signal from the DAC will outright clip the input, resulting in a lot of distortion regardless of how the pot is set at the output.
2. At the output, we must have the pot. If we want to drive a fair amount of cable and the 10K load of your power amp, that pot shouldn't be any larger in value than 1K. If we want to keep reasonable gain/distortion numbers in terms of tube operation, we don't want any more than a 10K load at the output of the preamp, so certainly not a 1K pot! (The 1K pot will burn off half the available output signal, decrease the actual gain of the circuit, and increase the distortion generated during operation)
3. Say we spit the difference in #2 and go with a 5K pot, then we must have a coupling cap appropriately sized for this. This is a mandatory 5uF, and again we are not prevented from getting a nicer quality 1uF cap to feed our Paramount, Stereomour, or Sex.
4. The output impedance of this preamp will be variable. With the volume nearly all the way down, it may be well under 500 Ohms, but once you crank it up, it will approach 5K. This will lead to variable performance depending on the position of the volume control
Despite all of this, you'll still see this done, and it can work if you're mindful of the gear in your system.
-PB