My Gibson RDA, my Hohner Jack and my PC'Bird all had the tone controls stripped years ago, and I have always felt that the "cleaner the signal , the better the tone..." works for me... simple electronics... but as a "butcher's boy", re radical mods, don't take it as read...
There is a simple rule when playing live... you are not going to hear what the audience hears, and you have to rely (if in a larger set-up) on others to "set your levels" - play a bit, but if you keep it simple it works better...
Only an audophile would disagree with me, but most of us will listem to our music as MP3's on an Ipod in the truck/bus/van/car whilst speeding down a Motorway/Highway/Autobahn...