I believe that "normalize" (or -ise, to cover both sides of the pond) is the wrong word -- or rather, the right word for the wrong function. Here's the description of that function from NCH Switch's online help:
Normalize
To 'normalize' is to adjust the volume so that the loudest peak is equal to (or a percentage of) the maximum signal that can be used in digital audio. Usually you normalize files to 100% as the last stage in production to make it the loudest possible without distortion. Another reason to normalize is to have multiple tracks sound equally loud, or to have equal average loudness.
This description further confuses the issue by propagating a common misunderstanding about how we decide something is "loud" or "soft", a confusion that also requires us to disambiguate (I'm stealing Wikipedia's word) "compression".
Normalization does indeed do what that first sentence says: it adjusts the overall gain so that the PEAK level of all tracks is the same. For music of similar type, produced and mixed for similar purposes -- e.g., all acoustic jazz, or all heavy metal, or all string quartets, recorded and mastered at around the same calendar year -- since the peak-to-average ratio of the music will be similar, adjusting the peak level (like turning the Volume control on your amplifier) will make everything seem similarly loud or soft.
The problem is that our perception of loudness has little to do with peak level and almost everything to do with peak-to-average ratio. The so-called loudness wars that have occurred since the 1990s (and earlier) involve compressing the dynamic range of music to make the AVERAGE level much closer to the peak level without simply pushing everything into clipping. Heavily compressed (not file size, but dynamic range compression) music sounds LOUDER than natural dynamics at the same peak level, because the average level is higher.
IF you are playing tracks from many different albums, mixed and released at different times (when artistic or commercial considerations were different), normalization doesn't cut it, but it's easy to do. Much harder, and more necessary, is gain analysis to determine the AVERAGE level rather than the peak. The ReplayGain algorithms were developed for this purpose. What you will find, in fact, is that to avoid clipping and still make all tracks have the same apparent loudness, you almost always need to make recent pop and rock releases QUIETER, because you can't make older releases (or proper acoustic music -- folk, jazz, classical) louder without forcing them into clipping.
Rearwing has it right: this should be optional, and preferably reversible. If you ever play an album straight through, you will want the dynamic relationships between tracks to be what the artists intended.
Cheers -- m.