With the low powered amp he has great tone and can find the correct volume for playing lead. He can't get good clean to play rhythm. I told him, mic the small amp and use the gain pedal-switch or get more watts.
When playing live he needs a way to play rhythm, then get a little louder to stand out of the mix and a little to medium more dirty. ... So then is what is needed a pedal that pre-distorts the sound a bit and moves the amp toward clipping without a marked increase in the loudness that you hear out of the speaker, i.e. the Bassman and a (?) Tubescreamer? Is that what it would do?
So you have a couple possible solutions there. It sounds like if nothing else he needs a large-ish Fender amp for cleans, so you can pencil that in as a definite.
I once modified a blackface AB165 Bassman several ways, but the main one was to exchange the existing Bass channel for a 5F6-A Bassman circuit (the amp has an unused triode, so I was able to have both the blackface preamp and the 5F6-A preamp). I used an A/B/Y pedal to select the channels. At the same Volume knob numerical setting, the 5F6-A had much more mids and volume/gain. If I turned up the blackface channel to match volume-in-the-room, then both channels had the same amount of distortion (though the sounds were still distinctly different).
The lesson for me in that experiment was that in the old Fender amp circuits without master volumes, the first thing to distort will be the output tubes. That happens when you feed a large enough signal to them no matter how you derived that signal.
Thought Experiment:
What if you had 2 complete channels with no shared components before the phase inverter, one with your existing 2 stages and tone circuit for clean, the other with 3 stages and its tone circuit for distortion. Assuming the 3-stage channel develops large enough signals to cause the preamp tubes to distort, you could balance the volumes of the clean and distortion paths by having a level control for each right before the phase inverter. The distortion channel level could be brought down to the same level (or slightly more, for boost) as the clean channel. The phase inverter and output stage cleanly amplify what's presented to them to drive the speaker.
Your present schematic is a bit more elegant, in that you're adding or removing a gain stage for the distorted channel. If your switching also included some form of level control for the output of each path ahead of the phase inverter, you might be able to balance the channel volumes.
That said, folks who modify Fender-style clean channels for distortion also typically reduce the value of the cathode bypass caps from 25uF to maybe 1-5uF because distorted bass gets muddy fast. And the tone control settings for clean may not be the ideal tone settings for distortion.
For an example preamp using this concept but sharing some gain stages, look at page 2 of
this schematic. The project uses London Power's preamp, with 2 gain stages for the clean path, and an additional 2 gain stages for the distortion path. Each has individual level controls. The output ("Jack-O") can go straight into your phase inverter and output stage of choice. Switch 4 (Channel Select, in the middle of the schematic) could be accomplished with a relay, front panel switch, or solid-state switching circuitry; however, I would not advise running the circuit out directly to a footswitch DPDT because it would like cause hum & noise problems. Keep the switching element right at the circuit and run wires from control elements to a footswitch.
Now I'm not saying this is the best preamp or solution, but wanted to give some alternatives and get you thinking about what exactly is the practical problem you wish to solve.