Dang I hate it when nobody responds to a thread. One of my functions on this forum, and possibly my only function, is to get people going. So maybe if I respond, it will stimulate others to join in. It worked before.
D10 and BR2 puts three diodes in series to ground in both directions to clip both the positive and negative phases of the audio signal. D10 does double duty by conducting during both phases. If you short out D10, there will only be two diodes in series going to ground in both directions.
Let's say that these diodes don't conduct until there is a difference of 0.6V across them. One diode will then clip when the signal reaches 0.6V, two in series will clip at 1.2V, and three in series will clip at 1.8V. The stock circuit will then clip at 1.8V and the modded circuit with D10 shorted will clip at 1.2V.
The tonestack in question has a midrange "scoop" and causes a substantial loss in gain. Disconnecting it flattens out the frequency response and alleviates the gain loss. The three diode to two diode clipping mod results is a lower amplitude signal during clipping. The larger signal from the tonestack mod and the smaller signal from the diode mod pretty much wash resulting is a very similar maximum signal going into IC something or other (possibly IC4, but it isn't particularly evident on the schematic).