Hi Hobbes, the output from the sensor (CCD) is an analogue voltage that has to be converted to digital in the camera, before processing, compression and recording to tape. The gain switch is used to boost or cut the analogue voltage before the conversion to digital data. Positive values represent boost, negative values mean attenuation.
Why would you want to attenuate the voltage? Yes, noise reduction is one factor. If there is a lot of available light then the CCD output voltage is nice and high. Attenuating this voltage also attenuates any noise so the blacks should look cleaner. Another reason to attenuate the voltage is to reduce the effective exposure which allows you to open up the iris a bit more and get a slightly shallower depth of field.
By the way, -3dB just means that the CCD signal voltage is attenuated by around 30%. +3dB means a boost of around 40%, and 0dB means no boost or attenuation.
If there is no backlight, we can safely fall back on the current crop of HDV camcorder's auto mode when there's a massive variation of lighting differences from indoor to sunny, bright outdoor when there is no time for quick adjustment, for example. Unless there's a specific overexposure or underexposure look that you are going for but I doubt that the 2.8" LCD is massively accurate representation of HDV images.....