The whole point of processing is to *improve* the sound. What is the point otherwise?
Equalization is used, particularly with speaker rigs, to correct for frequency response imbalances in speakers and the effect of room acoustics. No speaker has a balanced response out of the box. The second you put it in a living room, it will sound different. Room treatment and EQ are the two tools for correcting that. You do as much room treatment as you can and still have a livable room, and make up the difference with an equalizer.
With 5.1 speaker rigs, DSPs are very important to achieving optimal sound. The point of a 5.1 system is to be able to create a coherent sound field, which is essentially a three dimensional, engulfing sound stage. DSPs allow you to adjust the phase of the sound field to emulate larger rooms with better acoustics. A good DSP can take a stereo, or even mono recording and re-channel the sound to create the impression of a real dimensional concert hall.
I have a box set of Toscanini recordings from studio 4H in New York City. The studio was notoriously cramped and dry, and the recordings sound dead, especially since they are in mono. But if you take those recordings and run them through a DSP that emulates a classical concert hall, they sound as good as many stereo recordings recorded in much better venues.
At this point, the fidelity of home audio has reached the point where perfect sound has been achieved. Amps and players have specs far beyond our ability to hear, and back in the 50s, hifi nuts couldn't even dream of having sound as clean as we have. The future of home audio lies in creating vivid sound fields. That means 5.1 and DSPs. Multichannel sound processing is as much of a leap forward in sound quality over stereo as stereo was over mono. Even more perhaps.
The only way to fully implement 5.1 sound is through digital signal processing.