My simulations show severe distortion when there is no negative feedback.audioguru,
What is the point and conclusions of your simulations?
Ratch
They also show that the distortion is reduced very much when there is a high resistance ahead of the feedback resistor so that it allows much more AC negative feedback that you disbelieve.
Your emitter resistor reduces the maximum output level, my input resistor adds the same negative feedback as your emitter resistor but does not reduce the maximum output level.
I simulated your idea of separating the AC negative feedback from the DC negative feedback. It makes no difference.