Exactly, Brian, and that clip is one of the finest examples of how to get a clean, clear tone and huge gain/OD without changing anything but right hand attack and a volume pedal. Larry is such a master at that.One one of things I notice....and I'm guilty as well...is people using the word gain in the wrong context. I think it's more of a saturation/compression thing that people use.
This is played with a crapload of gain...but it's sure not saturated like a metal tone setting. And talk about controlling it!
The compression/saturation thing (in my experience anyway) comes from really driving the preamp (in an "amp only" configuration, obviously). When I was younger that's what I did - dime the gain with the master barely cracked open which was compressed fizz city with little or no note clarity or separation. Now I'm just the opposite because I realized that the way to get note clarity and the sustain/controlled harmonic feedback is to push the power section harder with less preamp input; basically, more volume.