Hi Tom, Carl, Charles and JCP,
There are some situations where having the RX amplifier and TX switching circuit close to the coil are beneficial. I have done this on industrial detectors where one wants as high a sensitivity as possible to small metal objects. To do this, you need a short pulse delay and a fast TX switch off speed. The main benefit of this arrangement is that you can do away with the cable and its associated self capacitance. This raises the self resonant frequency of the coil circuit and when properly damped, results in a faster switch off of the coil current. There is no benefit to the noise performance as electromagnetic noise is all picked up on the coil, as Carl says. Also, at these high sensitivities, the coil will respond to many of the metal parts in any electronics in close proximity. Particular things to watch are the cans of electrolytic capacitors and the leads of some diodes which are tin plated steel. Provided the signals from these metal parts are not too great and that there is no relative movement between them and the coil, auto-zeroing circuits can back these signals off.
With boat towed detectors, there is a different set of problems. Usually the TX pulses and sampling pulse delays are much longer, as you are looking for large targets in conductive sea water. The small electronic parts down near the coil are not then a problem and you can gain a benefit in noise performance. The reason is this; if you have all the electronics in the boat and 50 or 100ft of coax cable down to the coil, you can get microphony as the cable stretches and flexes in the coarse of towing. This is a similar problem that you get with marine proton magnetometers and I once designed a magnetometer fish for ELSEC that incorporated the polarising circuit and preamp in the fish to overcome this problem. Both with a PI or a magnetometer, cable noise can also be cured by using a screened twin cable and using a differential input preamp circuit. The cable noise then appears as a common mode signal and cancels out.
Eric.