Two possible answers here, depending on how you propose to adjust peak height.
If you are injecting a given amount, and propose to change peak height by changing the display settings, it doesn't matter (unless you doing manual peak measurement from a printout). The display is simply for informational purposes and can go off-scale without affecting the actual data processing.
If you are changing the amount injected, then so long as you are withing the linear range of your method, it should not matter. The linear range must be determined experimentally by injecting standards at various levels (this is normally part of method validation). The scenarios you describe (peak shape distortion at the high and and poor S/N ratio at the low end) represent the limits of the range.