I agree with your assessment in that I also prefer the sound of the MM input of the Steelhead which avoids its internal transformers. I haven't tried a Koetsu with the Manley SH, but obviously the only advantage to using an external step-up transformer would be if it is superior to the internal transformer. Manley winds their own transformers so I would expect them to be excellent, but I still prefer the sound of the MM input even with MC cartridges.
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