I'm getting kind of confused about this whole layering business, I guess it's the terminology as Marrow was pointing out. I kind of agree with you guys that you should be able to create a good mix with just levels, EQ and compression. But on the other hand, in my opinion, in sound design anything goes; you probably do much uglier things to your sound in a synth than you do with a little multiband and reverb. The question being begged is then, where do you draw the line between sound design and mixing?
E:formatting
you should realistically use any thing if you understand how to use it, other wise you can't completely capture the nuances of the tool you want to use. It's level and eq, compression was never mentioned outside of multiband.
Don't underestimate the power of the channel fader, eq, and panning...
You start mixing by choosing the sound source. Either recording, samples, creating a sound from a synth,sample, or recording.
Understanding the frequency content, mostly by ear but an analyzer helps, of the sound should give you some guide as to where it should sit in the mix by the volume, panning, and eq (see how it comes full circle?)
That's when you start mixing, but when you actually start the mixing phase, that's about EQ, Volume, And panning (more circles huh?)
but what else is involved with mixing is understanding how to mix your effects. (i highly suggest you look into bussing and/or auxiliary channels)
if you are using bus effects, you will have to control those effects with filters and eq (careful of the additive)
it's still very simple...people neglect what the analogue days tell you with all the fancy digital shit out now.