Forgive me, I didn't get much sleep last night and have confused posters and been a little too cranky. Let me start over.
First, I don't consider myself to an expert on anything, but since I have been told I am ignorant, let me at least explain what I know. I have a B.S. with an electrical engineering major. I designed speakers and measured speakers and amplifiers. I was given assignments such as proving parts of Fourier theory. Am I an expert? No, I haven't used this much since. I had a job for about 15 years working for NASA in the spacecraft navigation section, at which I learned a lot about inferential statistics. In particular this kind of work drives home the difference between a model of reality and reality itself. Now I am in music school studying to become a professional composer. I have recorded players -- I experimented with different microphones and microphone positions. I edited multiple takes down to a finished recording. I only did it twice so I wouldn't call myself a "recording engineer". However, what I am trying to say is that I'm not engaging in idle armchair speculation. I got out there and did it.
Let's assume electronics are perfectly transparent. That leaves microphones and speakers as the devices in the record/playback chain which have audible distortion. I am interested in microphones and speakers which are most accurate. So I would do the following. Let's say we are recording an ensemble. I would sit in the hall and listen to musical aspects of the their performance. These could include qualities of rhythm, such as noting how the articulation, tempo, and hall reverberation combine to create a certain feeling in the rhythm. These could include dynamics, in particular the subtle shaping of phrases, but also the large scale pattern of dynamics. We would choose a miking, then record the performance. We would choose speakers for playback. I would sit in front of the speakers, listen, and judge how closely the rhythmic quality and dynamics match what the players intentionally did.
Okay, I know I've got all sorts of objections coming here, but let's try to address them one at a time. If you are only interested in telling me I'm ignorant, then I'm not interested. What's the point? I'm trying to have a real discussion here.