Unfortunately, re: rendering of the content area based on the font, CSS2.1 does not say much at all:
The height of the content area should be based on the font, but this specification does not specify how. A UA may, e.g., use the em-box or the maximum ascender and descender of the font. (The latter would ensure that glyphs with parts above or below the em-box still fall within the content area, but leads to differently sized boxes for different fonts; the former would ensure authors can control background styling relative to the 'line-height', but leads to glyphs painting outside their content area.)
In other words, typesetting, and how exactly to draw and position the content area of a line box, is left up to the browser's own implementation, at least in CSS2.1. This may however be better defined in a future specification (likely the Fonts module, if not a separate module1).
Section 10.8.1 contains some details on how the line-height property affects the rendering of the content area around text that flows inline, but again it depends on the height of the content area itself, which as stated above is undefined in CSS2.1.
Note that auto is not a valid value for line-height; you probably meant to use normal, which incidentally is also its initial value (but not necessarily the browser default). Also, this is what the spec says about the value normal:
normal
Tells user agents to set the used value to a "reasonable" value based on the font of the element. The value has the same meaning as . We recommend a used value for 'normal' between 1.0 to 1.2. The computed value is 'normal'.
As you can see, there's not much to go on, even with regards to comparing line-height: normal and line-height: 1 (or 1em or 100%), because what constitutes a "normal" line height is up to the browser to decide as well. However, it looks like Chrome and Firefox do a good job of keeping glyphs within reasonable boundaries when asked to use a normal line height.
By the way, Chrome does not clip the descenders. It does render them outside of the content box, but it should never clip them to the bounds of the box unless you set overflow: hidden.
1 A CSS3 definition of the line-height property currently resides in this module, but it's immediately obvious that it's been long abandoned, or at least pending a rewrite. The module in its current state is extremely detailed, but suffice it to say that it's been largely ignored by both browser vendors and the working group.
