The problem is that it has been implied (either in the manual/guide or by user(s), can't remember) that the magnifcation level / replay volume is somehow attached to the file. Or not. And if so, how? And if so, if it is varied during recording, is the variation recorded, or just the final setting (which would be by far the easiest implementatoin of course, just one value for each channel). And if it's a metadata thing, will DAWs read it at all anyway? And if the magnification is varied during replay in the device after recording, is that new value saved in the same way? 'Cos if so, before editing, you could reset it to zero for each channel in the recorder, end of any problem when editing. So - there are still quite a range of possiblities (and problems, potentially) with this magnification feature.
As for stereo image, no, varying channel levels is essentially no different to using a balance control.
Generally, it has to be remembered that live music recording may not be the prime target of this device - it may have two channels as much for two lav mics being worn by two people, on soft spoken and the other not, as for a natural stereo recording.
[Edit - ah I've seen the catch - there's no adjustment for magnification during playback on the device. That's why you need to be careful with it. But if your DAW doesn't respect the stored magnifcation volume, it doesn't really matter anyway.]
[Another edit - actually, it's possible that the magnification level doesn't get stored as such at all - it could be simply digital playback/monitoring volume control - the wording of the manuals could be read that way, if you take into account translation issues.]