A quick questions Jay - Is this something you have been facing from the very beginning with the 1200 or is it something that has just cropped up?
I use the same setup of 1200 paired with the m97xe with a NAD 3020i PS and yes the carts gain is comparatively a bit low, but I do not need to crank the volume up like you mentioned. Something is really wrong.
As suggested, conduct a through check on the TTs tone arm wiring, alignment, calibration etc. I also suggest using the "TECHINCS BAERWALDS ARC PROTRACTOR" from vinylengine.com and its pretty accurate for the 1200. Also, try using another cart to isolate.
My Technics SL1200 was a brand new one which I bought from Tokyo 3 years back. So if not a product defect ( which is unlikely) I doubt there will be any problem with wiring. The alignments seems to be fine as I followed the grind and the output which I receive from the TT is perfect. But it's comparatively a bit low than the output I receive from my CD player and I love to listen things at high volume.
The above issue has been noticed from day 1 and I was suggested by few that a phono amp in between will serve my purpose But I didn't add any for the last 2 years. But now I am seriously looking into it and trying to resolve this issue.