As the main developer of VLC, we know about this story since a long time, and this is just Dell putting crap components on their machine and blaming others. Any discussion was impossible with them. So let me explain a bit... In this case, VLC just uses the Windows APIs (DirectSound), and sends signed integers of 16bits (s16) to the Windows Kernel. VLC allows amplification of the INPUT above the sound that was decoded…
How about detecting Dell Speakers and automatically setting the max volume to 100%, with a notification so the user can give an a-ok if they want to go higher. That way, at least users know and can make a decision. Similar to the Android warning if you set your volume too high that it could cause hearing damage. I'd prefer to be warned rather than surprised by this!
How would you do that?
And no, this is not specific to VLC.