I remember doing the proof of the power transfer theorem back in my college days (1960s). But I still become confused by it when discussions like this arise. And I have to review things and remember what it actually talks about.
The confusion in the power transfer theorem is in the fact that it is talking about POWER; not Voltage, nor current, but POWER. And that POWER must be held constant at the source. So the source can not be modeled with a constant Voltage source nor with a constant current source. It must be modeled with a constant POWER source and either the Voltage or current or both will vary when the total resistance, Rs + Rl, is considered.
This means it applies to things like electric generators, which can generate only a certain amount of power. Or the TV transmitters that I operated where the power generated was approximately constant. This has nothing to do with the actual level of that power, high or low. It applies to micro-Watts and terra-Watts equally.
So quick examples using 1 Watt power level.
MATCHED IMPEDANCES:
1 Watt source
50 Ohms source resistance
50 Ohms load resistance
100 Ohms total resistance
Vs = SqRt(P x R) = 10 V
Vl = 5 V
I = 0.1 A
Load Power = Vl x I = 0.5 Watts (as expected)
HIGHER LOAD IMPEDANCE:
1 Watt source (the power is CONSTANT)
50 Ohms source resistance
100 Ohms load resistance
150 Ohms total resistance
Vs = SqRt(P x R) = 12.25 V
Vl = 8.16 V
I = 0.055 A
Load Power = Vl x I = 0.45 Watts (with constant power it went down)
LOWER LOAD IMPEDANCE:
1 Watt source (the power is CONSTANT)
50 Ohms source resistance
25 Ohms load resistance
75 Ohms total resistance
Vs = SqRt(P x R) = 8.66 V
Vl = 2.89 V
I = 0.115 A
Load Power = Vl x I = 0.33 Watts (again, with constant power it went down)
This is not a proof: that would require calculus. But it does show that when the power is held constant, the theorem does work. And, as others have said, it does not apply to varying the source impedance.
https://en.wikipedia.org/wiki/Maximum_power_transfer_theoremBut all of the above does not say it is a good idea to omit the source resistor when an AC transmission line is being driven. There are other reasons for that (reflections) and I can tell you from practical experience that there will be bad consequences at higher frequencies. With DC there are no problems that I know of.