Are you asking whether the output block should apply the gain it currently does? The answer is "yes", but whether the output block applies gain or not doesn't really matter to the issue this thread is about. The only issue is how to make it more obvious what it's doing. Just like the OP here, lot of people have been confused over the years to discover the output block is applying a digital gain that's not apparent in the UI.
One solution would be to change the display scale of the output 1/2 block level parameter so it shows 20 dB more than it currently does. Another solution would be to add a on/off switch to the output block for 20 dB of gain.
Either way, the output block would work the same way it does now. The only difference is the function it performs would be clearer. This is obviously not a high priority problem, but it has led to a fair bit of confusion.