I'll second what TragicHero said. The main thing you get with bypassing the pots is not more brightness, but more output. It will be a bit brighter, but mostly it's louder.
I wired my Hofner travel guitar with a bypass setting (The wiring is essentially like the original Esquire wiring you mentioned, with one switch position having a capacitor for a bass-y tone). Here's the thread:
Hofner Travel Guitar mod threadUnfortunately, the sound clips I posted therein (now 7 years ago) have gotten lost in the ether, as they resided on a cloud account that I no longer have access to. But I like the bypass setting;it's useful for going quickly from a rhythm setting to an instant lead sound with the flick of a switch.
That's why it's often called a "solo switch". We've also had it called a "blower switch" (I guess, from the blower on a dragster). I hadn't heard "passing lane" before.
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That's a good question, and one that I am poorly qualified to answer- One of our learned electrical gurus will come along with a more-technically-correct explanation.
But (I believe) that you've basically got it backwards- when you remove the pots, you
increase the resistance. This is because you pickups and the pots are all wired in parallel, and it's the total resistance of the entire circuit that matters, not any one component's resistance.
Parallel resistances are calculated as a sum of the inverses of the various values- which means that the total resistance of the circuit
decreases as you add more components in parallel.
Let's take an example. Say you have a Strat SC pickup of a typical 5KΩ resistance value. You have 2 500KΩ pots. We'll drop the "K" from the calculations to make the maths easier. Call the 3 as 5, 500, and 500.
The total resistance ("R
t") is given by the formula 1/R
t= 1/R
1 + 1/R
2 + 1/R
3. Plugging in our values, we get 1/R
t = 1/5 + 1/500 + 1/500. Converting to decimals gives us 0.2 + .002 + .002 = 0.204Ω, but this is equal to 1/R
t. So, solving for R
t, we get R
t= 1/0.204, so Rt = 4.901Ω (We can of course multiply by 1000 to add the "K" back in).
But, recall that our theoretical Strat pickup was 5KΩ. If we take the V and T pots out of the circuit, the total resistance is just the resistance of the pickup, i.e., 5K, whereas with the pots it was 4.901K.
In a parallel circuit, the total resistance must always be less than the resistance of any one of the components.
(At least, I think that's the explanation.)