I see where you're coming from, Mike. Oversampling with no gain reduction is like advertising a really, really high-fidelity piece of straight wire.
It's a communication issue. Fabien is a genuine expert in the field, guru to the gurus, someone I always stop and listen to. But English is not his first language so sometimes his explanations require further contemplation before they make complete sense (e.g. "Kotelnikov allows to enjoy the advantage of oversampling with the typical drawbacks").
Some of the concepts Fabien has talked about are rather advanced, and would be a challenge to express even in one's own native language. I may be about to prove that point as I attempt to re-phrase it in my own native tongue...
What he's saying is that oversampling compromises perfect fidelity due to the required filters, even when the plugin isn't actually doing anything else other than
just oversampling/downsampling. The input and output of an oversampled plugin will therefore never null.
Kotelnikov takes a unique approach to mitigating this effect. It subtracts the output from the input to determine what's changed, then adds the
difference back in to the input to create the final output, and that's what you hear. Because only the difference between input and output is oversampled, the lower the gain reduction the less effect oversampling will have on the final output. By the time you get all the way down to zero gain reduction, there is no more difference and therefore no oversampling, and you've achieved perfect nullability between input and output. No other compressor can make this claim.
I confirmed this oversampling-doesn't-null phenomenon for myself through experimentation. I used a high-quality plugin (FabFilter Pro-MB) with no processing enabled, and then used null tests to confirm that the output was identical to the input with oversampling turned off, but that they no longer nulled completely when oversampling was turned on.
However, the difference was too small to see in SONAR, even with the zoom all the way up. I had to use an audio editor (Adobe Audition) to actually see the data. It was very small, with a peak sample value of 6.3, which Audition reported as -74dB. I verified in AA that the sum signal with oversampling
disabled was a true flat line - zeroes all the way across, to make sure this tiny difference wasn't just noise (e.g. accidental dithering).
So Fabien's right. Conventional oversampling does in fact cause a minute loss of fidelity. However, I gotta say that anything that close to the noise floor isn't something I'm gonna worry about. It does reflect the extraordinary lengths he went to in this plugin's design to make it as transparent as possible.