The whole "loose squelch helps multipath distortion" argument is total BS. It doesn't help that out any more than it helps out any other weak signal detection. I am really surprised that Paul, of all people, would post such nonsense.
productionguy85 is right when he says it does more harm than good. Leaving the squelch open causes difficulties with the system not reverting back to the control channel after a voice call is finished.
I should have posted as soon as this thread was started, but I waited a long time because I'm lazy. Loosening up the squelch isn't a solution or a fix for anything really, except for weak signal decode. And in the case of weak signal decoding of digital signals, if it's so weak that the squelch must be kept loose or open, then it's more than likely going to be too weak to decode anyway.
There is only one true way to combat the multipath distortion issue when it comes to scanners, and KA1RBI has already documented it well. Scanner manufacturers simply need to get on board.
Mike