Please someone correct me if I'm wrong -
Rectification is a non linear operation - adds more harmonic components - this means that even if you did everything correctly each of your both systems should be able to handle much wider bandwidth than original signal has. My two cents to this.
This is correct. If you don't apply any filtering (read band-limiting) or nonlinear operations that work near the zero-crossing, then you will be able to reconstruct it perfectly. For the case of a delay line, you would want to apply your anti-aliasing filtering before splitting the signal, and then you would want to recombine these before application of reconstruction filtering.
If both clocks in the delay line are synchronized, then you don't have to worry about aliasing on the discontinuous break as long as both sides are combined prior to reconstruction filtering.
(Un)fortunately most A/D chips marketed for audio use include some sort of oversampling, filter, decimation and the D/A converters usually integrate oversampling and reconstruction filtering. Then the question is whether the amount of band-limiting applied to the discontinuity is audible after reconstruction, or if it's high enough to avoid being audible.
just make it balanced (two out-of-phase signal paths)
merlin is right. That is equivalent but removes the challenge of precision rectification and recombining the nonlinear halves in a linear manner.
If we're talking about maximizing headroom, I still think the compander is the best bang for buck in my book. When you split signal paths for parallel processing, clocks have to be perfectly synchronized and all the challenges that go along with that, but at least it doesn't need to be quite as precise when using parallel linear processing.
Even better is using a system in which the digital resolution (or SNR) is more than you need. Then you can create as much headroom as you need with a resistor divider and then amplify the output back up to your full analog swing.
For example with a PT2399, 16 bit precision A/D, D/A you don't need to do anything more tricky than that for headroom. For example, if you want 6 dB headroom, your effective bit depth becomes 15 bit.
PT2399 claims "better than 90 dB SNR" (this hints at 16-bit digital -- 20*log10(1/2^16) = -96 dB).
From here,
http://neunaber.net/blogs/brian-s-notes/13830765-the-analog-myth-chorusI glean a typical BBD can give you -80 dB SNR, and I will assume this is the best you can get on a pure sine wave constant in amplitude at the full headroom.
So, to get that bad with the PT2399 you can use a resistor divider to achieve 10 dB headroom. Added to that, you have noise from the compander and usually multiple BBD chips...this is why I think you can have all the headroom you would need on a PT2399 without doing anything tricky.
With a BBD I think you don't have much choice other than companding to get adequate headroom and SNR.