This is not the proper way because your "clean signal" is in effect under modulated. You set proper AF drive level you can adjust power to any output you want from 5 watts to 100 and not need to readjust audio. If this is a popular practice this is the first i ever heard anyone doing it. It would be interesting to test signal developed both ways for cleanliness and modulation/loudness. I normally run 20 watts but when I need more or less I change power level control and not audio drive. I set my audio levels and forget them.
Yes, this IS the proper way to run digital modes. TX power fully max, limit power output by reducing audio drive levels.
For any digital mode, ALC is distortion. Running the rig at full capability and then not going there with the drive levels guarantees that your ALC circuit never has any reading and is not introducing distortion into your digital stream.
It is standard operation for digital modes.
from
http://kc.flexradio.com/KnowledgebaseArticle50363.aspx"Procedure for Adjust RF Power Output for Best IMD when Operating Digital Modes
Step 1. Set the PA Gain to 100.
Set your PA drive at 100. When you keep the audio input levels below -1dB, this will produce a signal that has the most optimal IMD figure with the maximum RF output."
From
http://www.mymorninglight.org/ham/psk.htm"Set your rigs' RF OUT to MAX, then set the MIC GAIN to MIN. "
From
http://www.westmountainradio.com/content.php?page=supportduo"Your radio should be set to your normal mic. gain setting for you and your mic. The speech compressor should set on or off depending on the mode you are running, see the software help files. Set your radio's RF Power (drive control) at maximum and the radio in USB, even for sound card operation with RTTY AFSK"