If you look at all 3 illustrations, on pages 36 and 37, it appears that they are telling us that Threshold will, in fact, play a role in degree of target response. By looking at the picture on page 36, it clearly says that having a Threshold in a negative value, small target signals will not produce a signal big enough to go above the Threshold of audibility. The associated illustration indicates that the Audible Target Response is less than "half way" to the top horizontal line. In the middle picture, with Threshold set to 0, the Threshold audio/sound is disabled and the detector will produce target signal's sounds only. Notice in this illustration that the Target #2 now has an Audible Target Response above "half way" to that same horizontal line. And, also note that the Volume is still set at 30. Now look at the picture on the right. It has the Thereshold set to a positive value, and the detector will produce target signals and a Threshold sound. The illustration for this setting still has the Volume set at 30 and the Threshold at 10. But the Audible Target Response is clearly much greater than with the other two Threshold settings. In fact, it surpasses the horizontal mark, and actually would have gone deeper if the target had been deeper.
Maybe Minelab Engineering will have to answer this for us. But, based solely on the illustrations, it appears that the Audible Target Response is constant. In other words, the value of the target response will not change in relation to where it started. The depth of detection appears to be based on where the "starting point" is. In other words, using Threshold level of 0, the target response point is defined. If you set the Threshold lower, the starting point for the target response will be lower and you will have a lesser Audible Target Response. And, if you set the Threshold higher, the Audible Target Response will be greater. I think the key is to hunt with the Threshold level that is comfortable for you. If you chose to hunt in "silent search" mode, recognize that you may not be maximizing the value of your Audible Target Response. Expecially if you set your Threshold below 0. I have found that I can just barely hear mine when it is set at 4. At 7, it is still comfortable. So, that is where I have mine as I want to have my "starting point" as high as possible without having it set so high that I can't distinguish audio changes that represent targets.
Again, I don't know. Just basing my opinion on the illustrations and verbage of the manual. HH Randy