I only got to writing down those thoughts because you pushed me to
So thank you.
I think we are talking about two different things.
You are talking about the loudness range, which is a range of a measure averaged over all frequencies over a "blink" time (~200 ms), and I agree that there is no need to have it over 96 dB. In fact, I usually keep it at 80 dB to avoid long-tem hearing loss and only occasionally push it to 90 dB for specific music or show pieces.
I'm talking about the record amplitude range, which needs to accomodate transient spikes in amplitude to faithfully represent frequency, amplitude, and phase of the component sine waves, none of which requires that wide a range individually.
Here's a simple example. Imagine a short fragment of music that contains bass guitar at 41 Hz, a vocal note at 1000 Hz, and a cymbal at 8,000 Hz. If you draw their wave forms, you'll see that they all almost inevitably wil be close to their maximum positive amplitude at some point in time. The number of additional bits needed to represent the summary waveform without clipping is binary logarithm of the number of such components.
Certain music genres, e.g. symphony, tend to contain great many components, and thus the transient amplitude spikes can be very pronounced. Some other genres, like pop music, have significantly less. Thus 16/44 may be perfectly enough for pop recordings, yet not enough for classic, jazz, symphonic rock, brainy electronica etc. The latter genres really benefit from 24/96.
A SACD recording is able to represent the difference between a Stradivarius violin (characterized by an extremely rich spectrum) and a run-of-the-mill one. On a CD, I'm not able to hear such a difference. On SACD, Celine Dion (once again, having very spectrally-rich voice) sounds unusual and divine. On CD, she's just yet another female singer.
Anyway, if we agree to disagree, that's fine with me. Still, try to assemble a good 5.1 or 7.1 system using decent studio monitors and listen to some SACD or Blu-ray recordings of acoustic music and female vocals.
Then you'll fully understand what I'm talking about.
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Thanks for your answer Krav, it had a lot of information, though I think you missed the main point, that is practically no music requires reproducing such range, even in the front row of a with an orchestra plaing a symphony, you don't get 96 dB above room floor noise, and you don't usually want to reproduce a gunshot at 1 cm distance.