Not sure I understand your remark on reducing dynamic range by increasing the gain?
While limiter are, in essence, compressors with a very specific setting and purpose, abusing a limiter the way you describe to reduce dynamic range is typically not gonna be very succesful. Increasing gain typically raises the PRE-fader input level. Red is red, so if you gain up your track into the red, you’ll introduce a clipped signal into the channel. Now the limiter on that channel will just kill whatever is above the threshold when you are fully fader up. What you’d need is an actual PRE-fader compressor. Easily done in a component system (i.e. mixer with (media)players), hard with an all-in-one system.
For the same reason a limiter is typically built in POST-fader on the master, rather than every channel having it’s own limiter (for all the obvious reasons). And since record out is typically independent of the master channel (fader & eq changes for example don’t typically affect your recorded signal), you can change room volume and sound without messing up your recording.
Now I wouldn’t be me if I didn’t try come up with a solution. What you can do is record the set as is. In post-production then just add compression on the parts that you want. If you are using a true DAW for post-production and this is a real big issue for you, there are some mastering plug-ins available that will (semi-)automatically analyze your entire recording and try to EQ and compress everything to have the same sound and loudness level.
My three cents worth as usual