As I explained before, the 20dB headroom is protection in case a transient exceeds 80dB in a mix. It is *above* the sustained peak level, not measured from the average level. They're mixing at 24 bit, so they have a very low noise floor. They can afford to be safe.
But playing back music in the home is a totally different thing than recording and mixing it. A commercial CD doesn't have the sort of huge transient peaks you encounter while recording. Peak limiting has already been applied to allow the CD to play at a decent volume level and not shove all the signal down to the bottom of the dynamic range near the noise floor. Figure this... 20-30dB headroom, 55dB range for dynamic music, Now we are pushing -85dB which is close to the noise floor of a CD.
But this is all related to preventing digital clipping. The context we are talking about here is whether an amp is powerful enough to render all transients cleanly. If you turn the volume up to a playback level of 80 to 85dB, that is a LOUD listening level. If you have headroom in the amp to double that, you are absolutely safe. That is 10dB. 90dB is all anyone with normal hearing would need.
I'd recommend getting a SPL meter and measure some sound so you get a feeling for what dB figures refer to in actual sound. There is absolutely no reason to need 115-120dB. That is an insanely loud volume.