That's true. FWIW I don't feel ambushed at all
I seem to be in some trouble whichever word I use ("saturation, "clipping", "overload"). In your example above I would say that the needle jumping out of the groove amounts to pretty hard clipping! If I was preparing my recording for vinyl, I might be tempted to self-administer some compression, so my recording would have a form of saturation anyway, so I don't think it's possible to say simply that vinyl does not suffer from saturation - it's more complex than that..?
Yes it is! Knocking the needle out of the groove usually has nothing to do with saturation, overload or clipping. It has to do with out-of-phase information, usually bass information. The thing about bass in a natural environment is that it tends to not have much in the way of directionality. So in a natural 2-mic recording out of phase bass isn't a problem. It becomes a problem when you start recording in two different rooms where each room has its own bass instrument being recording. With any such multi-track recording you have to beware that there could be phasing problems brought on by the fact that the recording is not true stereo.
The most common means of dealing with this is a circuit that causes the two channels to be combined in mono temporarily for the brief period when you are actually dealing with the out of phase bass. Such a circuit is only effective below a certain frequency, which often can be varied somewhat. Note that we are not changing levels at all, and also that stereo information above this cutoff frequency is unaffected. This is sort of basic 101 stuff for any mastering engineer to learn to deal with. It is a matter of understanding what the playback pickup is capable of and what it is not. IOW, the limitation of the LP's dynamic range exists during playback, not record. In record mode the LP can easily demonstrate dynamic range far in excess of any digital system, but no cartridge could ever be able to play it back.
But we are not talking about saturating a cartridge either. The cartridge is capable of much larger output voltages than what might be encountered with out-of-phase bass. Its really more a matter of understanding the rules of how the recording works. You have similar limitations in digital recordings, for example no part of the recording should exceed the Nyquist frequency, or the bits on the CD surface must be of a certain dimension on order to be properly interpreted by the playback apparatus.
We did a project recently where our playback (a Technics SL1200 with Grado Gold cartridge, and our Triplanar with Transfiguration Orpheus) was able to play a cut we made just fine. But when we sent a copy to the client, there was a certain track that caused the needle to jump out of the groove. Our solution was not to change anything in the signal, but simply to cut the groove deeper. Keep in mind that the dynamic range expressed on the LP is a function of the modulation of the groove, not the depth of the groove. A deeper groove though might mean that we have to have more spacing between grooves, so we might not be able to get as much time on the LP. I am using this example to show that there are a variety of techniques available, and that altering the level does not have to be the only way to deal with it.
I have to admit I didn't know all this when we started. The machine taught us a lot! It also helps to have good advisors