Dave: don't you live in perth as well? Are you studying at SAE, perchance? I just finished a degree there ^______^
To be honest, while I enjoy dynamics in my music I certainly don't mind a bit of clipping here and there, but I guess it depends on context. I listen to a pretty large amount of noise, drone and noisy, droney metal, so I find it hard to get fatigued; but certainly there's a few songs I have where the lack of dynamics (or sheer loudness, for that matter: I can't be the only one who finds it strange that Sigur Ros's Gong is louder then Electric Wizard's Dunwich) annoys me to no end.
Having said that, it seems that a lot of bands are starting to get some backlash to this: I guess the pursuit of old analog tone or what not has enabled this, and I think it's good. For a while, it seemed that the only band with good mastering (basically, the band is a lesson in excellent production) was Neurosis, but now more and more metal bands are dropping the peaks for dynamics, which overall I enjoy a great deal.
I can't really say as to what it's like in other genres, considering these days my music taste is more restrictive and limited then ever before