The 'Direct Out' approach is about minimising the loss of tone and detail inherent in signal paths- the longer the path, the more stuff there is in the way, the more resistance and absorbtion of energy, the more loss of signal. This is the 'pure flow' concept again, applied to the electronics as it has been applied to the other areas of the Naiad design.
The natural sound of an instrument, the sound that comes from the quality of the materials and construction, the interaction of player, strings and wood, can be taken away during amplification, but if lost, it can not be put back, only mimicked.
A Direct Out setup is not a 'one sound' setup, it is as versatile as any electric guitar. With modern recording, amps and effects I would say it is actually more versatile because of it's balanced, broad frequency range and detailed signal. It gives more signal resolution, so more options and possibilities in shound shaping. This is as true for crystal clear clean sounds as it is for highly effected or distorted ones. If some parts of the frequency range and fine details have been lost before the amp, then so have some of the possibilities. A huge range of sounds can be achieved after the guitar, providing the signal is there to begin with.
Tone and volume controls, selectors, switches and the like, both inherent in their construction and in the long, cluttered signal paths they create, weaken and filter the signal considerably. This is not about a high output volume, it's about avoiding loss of detail, dynamic response and frequency range. I would say the there is little that can be done on a guitar body with electronics that can't be done better away from the guitar. A quality volume pedal is better than a volume pot, a good eq pedal or rack unit, or a wah, is better than a tone control.
Another factor is that the magnetic force from pickups exerts a pull on the strings which dampens them, particularly affecting the decay of a note. A player can selectively damp the strings with playing technique, but if the natural decay is strangled it cant be put back, again, only mimicked. Magnetic pickups are critical to the guitars' sound, weakening their magnetic field to avoid damping affects the sound massively. This is why having just one, of the very highest quality, minimises this effect while retaining the iconic and versatile tone inherent to magnetic pickups.
All this is part of the concept I think of as 'pure flow', which I have applied to every aspect of the Naiad design- about allowing the guitar to be as unimpeded, as responsive, as alive, as possible. It also gives a purity on the guitar itself that inspires control over dynamics and tone to come from the playing style.