Maybe some amps would do what you expected, but some amps just don't, example: Parasound, Marantz, Bryston etc., based on the models that I had used in the past. So, the Mc501 probably would behave like those amps, that is, the input selector are not really a physical selector switch, but one that was designed to maximize SNR, so if you use balanced output from a preamp, and connect to the Mc's XLR input and you flip the switch to unbalanced, you would likely get louder sound at the same preamp volume setting.
In that case, if you want to keep the volume low, but still get loud enough sound for you then do that, but it would make no sense because you will get poorer signal to noise ratio. My suggestion is, just use that selector switch according to the instructions, and always use balanced except of course when you have use preamps that have only unbalanced outputs.
Note: If you read the manual, the Mc501 specified:
That confirms what I thought, that if you use the switch properly, you will hear no difference in sound pressure level at any given preamp volume setting whether you connect your preamp RCA output to Mc501 RCA input, or preamp XLR output to Mc501 XLR input.