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It doesn't "sound" loud because human hearing doesn't operate solely on the peak volume.
At the most basic level, we hear RMS. Mastering tools like compressors and levellers aim to eliminate or reduce peaks, which help bring the RMS up. Of course these can only be used to such a significant extent before you hear pumping; the best way to eliminate transients and peaks is to, well, eliminate them from the mix.
The frequency distribution also plays a huge part in making a track perceptually louder. We don't hear some frequencies as well as others, and muddiness in any band is going to raise the actual volume while lowering the audibility (i.e. perceptual volume). That's why it's so important to have a clean mix.
Both of these things fall under the larger umbrella of what we all typically just call "mix quality". Mastering plays a very small part, but for the most part, if your track sounds too quiet and it's just barely below clipping volume, you need to work on parts of the mix (levels, EQ, reverb, compression, etc., it all depends on the particulars of the track).
As for your peak meter, I'm pretty sure that was answered before; it may go above 0 dB within Cubase playing through your ASIO driver, but when you bounce it to wave then it's going to get clipped at 0 dB, and you'll either hear distortion or hideous pumping in the final master. 0.1 dB is too high; 5 dB is way too high.
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