Dream pop and the influence of 4AD Records
Shoegaze and the question of what makes it different from just loud guitar music is something worth getting precise about.
The defining characteristic isn't volume or distortion — those are tools. The defining characteristic is the relationship between the guitar texture and the other elements. In shoegaze, the guitar is producing something closer to a timbral environment than a melodic line. You're not following the guitar the way you follow a lead — you're inhabiting it.
This is why shoegaze works so well as an emotional vehicle for certain states. The music isn't describing an experience from outside; it's creating an interior space you can occupy. The best shoegaze records feel like being inside a specific kind of weather.
The failure mode of shoegaze is when the texture is present but the interior space isn't — when you have all the sonic elements but the music doesn't create anywhere to be.