Gombessa The "too loud" graph piece has several clearly audible clipping moments. It was not my recording, so I could only make some guess. Assuming the original recorded source material has no clipping, then just like you said it will need to have some limiter applied to reduce the peak first, then amplify/normalize to bring the overall loudness up.
But any time limiter or compressor is used, the dynamics is reduced. Even as a beginner, I find a significant portion of my time and effort polishing a piece is focusing on the dynamics. I would really want my audience to hear the end result exactly the same as I was hearing when I was playing. Therefore it makes no sense to digitally alter that dynamics just for publishing online.
I have read about records made decades ago have better dynamics than today's. So, the "git louder" culture is indeed hard to resist. For casual listening, louder do sound better. In listening comparison of audiophile speakers, it has been shown that if the SPL (sound pressure level) at the listening position is not precisely calibrated to be equal for all test speakers, then the slightly louder speaker will have a better chance of being perceived as sounding better, even when it is not.