ALL mk1 and 2 Kans are horrid and distorted - it was designed into them and it got worse as KEF messed up the bass-mid units. The mk2 was a serious attempt to make them more neutral, but the box colouration became unbearable to me - ugh! Having that whacking peak up at very upper midrange made drum-kits sound impressive though 
Anyway, do resistor networks add distortion? Surely a proper attenuator need only have two value-selected resistors in circuit at any one setting. That way the loading as seen by source and amp would be the same, thereby removing yet another variable, would it not?
This whole thread seems to me like a hi-tech sledgehammer trying to crack a peanut, when a little plastic-film pot would do the trick? Sorry, I just don't 'get' the 'have to improve what the designer thought was fine' vibe - not criticising, just increasingly confused.
I can't go on and I can't go back, I don't feel so matter of fact,
I tried and tried to make good sense, What's the good to try it all again?