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Essentially a clipper will distort the signal more, but can actually sound snappier than limiting if used properly. Clipping was commonly used for FM and AM broadcasting before the transmitter to bring up the levels (along with compression).
Clipped waveforms are exceedingly high in THD, and will cause aliasing with most audio codecs. So a clipped waveform (or clipping the AD converter) may sound better in the studio, but will sound worse as and MP3 or on digital radio than using a limiter. Look ahead limiters are preferred when using codecs as they have a lower THD than clipping, and will not alias the system.
Having said all of that, you will find clipping the AD is very common. Most MEs are guilty (including me).
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