Question: What was the intention of DBX encoded recordings?

Is These were completely incompatible with standard record playback preamplifiers, relying on the dbx compandor encoding/decoding scheme to greatly increase dynamic range (dbx encoded disks were recorded with the dynamic range compressed by a factor of two in dB: quiet sounds were meant to be played back at low gain and loud sounds were meant to be played back at high gain, via automatic gain control in the playback equipment; this reduced the effect of surface noise on quiet passages). a good answer to this question?

Available options:
I. yes
II. no
I.