2. Source termination halves the output level which would be a problem if logic levels have to be preserved. The implication is that if no source termination is used with a logic level driver, logic levels will be preserved and a normal gate can be used as a receiver.
Is this really true though? It halves the output level *at the transmitter*, but that voltage is doubled when it hits a high-impedance receiver, at the end of the transmission line so you do get 100% of it back where it matters. If the receiver is also terminated, then it will get 50% of the swing.
You are correct, but let me explain.
If the transmission line is open, then the series termination at the source divides with the transmission line impedance to make a half level incident wave, which doubles restoring the original value once it reflects off of the open end of the transmission line. If the transmission line has a parallel termination on the end, then there is no reflection and the level remains at half.
The problem with the first case is that the signal level at the receiver starts out at half, and then doubles to full once the reflection gets back, which makes detecting the level tricky unless the receiver is only at the end. The trouble with the second case is that the signal level is halved so likely will not work with logic level receivers.
In a party line application with a bus where multiple receivers are present, series termination is not used. Standards like LVDS, RS-485, 10Base-2, and GTL (Gunning transceiver logic) work this way.
My weirdo compliance limited current output RS-232 driver that I described worked this way also, but managed without termination at all. I never followed up in detail, but I suspect saturation of the current mirror output presented the proper series termination impedance once the output reached full voltage. There are some tricky terminations which use the non-linear impedance of a diode this way.