I'm using this part in the configuration:
Vin = 5V
Vout = 3.3V
The datasheet specifies that Vbias be at least 1.6V higher than Vout. My configuration satisfies that requirement (with 0.1V to spare) and so I plan to connect Vbias to Vin.
The issue I have is with this incredibly vague and confusing statement:
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Dropout is limited by BIAS in these applications because VBIAS provides the gate drive to the pass FET; therefore VBIAS mustbe 1.6 V above VOUT. Because of this usage, IN and BIAS tied together easily consume huge power. Pay attention not to exceed the power rating of the IC package.
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I assume the warning applies if the differential is not at least 1.6V. But if I supply it with 4.9-5.0 volts this warning does not apply and the device will function normally, correct?