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Ideal range gradually dropping off

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The available energy is determined by the difference between the strongest and weakest strings. During charging the strongest string hits the maximum permissible voltage first, so it limits how high you can charge. While driving the weakest string hits the lowest permissible voltage first, so it limits how low you can drain the pack. Leveling improves the pack capacity by reducing the difference between the strongest and weakest strings.
I wouldn't characterize it that way. The weakest/smallest capacity string will determine the range, period. When charging the weakest/smallest string fills up first so it hits high voltage first, charge is bled off it to let the other strings come up to that voltage. When driving the weakest/smallest string empties first, dropping voltage and running out of capacity, and would trigger a shutdown if allowed to go low enough. Balancing the strings, which is actually top balancing, also unbalances the strings at the bottom, it's a trade off. The smallest capacity string is always going to dictate your range.