do I want to limit the input signal to the PA stage so that (G1=0 or +) is avoided, or just reached?
You would design the output stage to make the desired output power, using available tubes, output transformers and power supply voltage/current. The choice of output tube, supply voltage and class of operation (which impacts power output) will be contributing factors that determine the output tube bias voltage.
The phase inverter for most guitar amps is designed to deliver a peak output voltage equal to the bias of the output tubes, assuming a fairly high load impedance (often 100k-220kΩ from the output tube's grid to ground or fixed-bias supply). The phase inverter is often designed to have to reserve capability beyond this output so that the amp's clean output power isn't limited by distortion in the phase inverter (meaning the output tubes should run out of steam and distort first).
Often, the phase inverter is designed to deliver its required output with an input of about 1v. So the balance of the preamp is generally designed so that with an average guitar input signal, and after considering losses in tone circuits, etc., it will deliver 1v to the phase inverter with the volume control set at about half- to 3/4-full volume. That gives wiggle room for weak pickups or a light touch.
do I want to limit the input signal to the PA stage ...
So in other words, you're not limiting drive to the output tubes but insuring you have ample drive even with weak pickups.
When the output tube grids get driven positive, they will limit and clamp the drive signal themselves. Once positive, the output tube grids draw grid current. The phase inverter generally is not capable of maintaining its voltage output while also delivering this current, so its voltage output will collapse. Class AB2 and Class B2 amps are designed to drive the grid positive and source grid current, and are pretty uncommon.
... how does PA distortion, clipping/saturation occur?
If a tube had an output signal exactly like the input, only bigger, it wouldn't distort. If the tube's characteristic curves were perfectly straight, equidistant lines, the tube wouldn't distort. Outside of very small input signals, neither of these cases happen. So even before a tube runs into some hard limit, it will distort to some degree. It's just that distortion might increase dramatically as a hard limit is approached.