Actually I think the example of a Stereo 70 is absolutely pertinent. First, if you look around, you will see many claims that "there is no audible difference between tube and solid state electronics as long as the frequency response and THD remain below audible limits" - and the Stereo 70 would fit the criteria stated in those claims for "a tube amp that shouldn't sound audibly different from a solid state amp of equivalent power as long as you don't overload either one". However, my real point there was that, when most of the tests most people reference were actually performed, those were both "the latest equipment"... and, back when the Stereo 70 was current, a lot of people did in fact claim that "there was no point in doing any further development because it was plenty good to satisfy the abilities of human hearing" - and most of us no longer consider that claim to be true. In fact, that same claim has been made for tube amplifiers, vinyl recordings, cassette recordings, open reel recordings, and CDs... but opinions of whether it is true or not for each of them have changed over time. Perhaps, twenty years from now, people will look back and say "they were right - and CDs really are good enough to sound perfect within the limits of human hearing", but I'm not convinced about that - at least not yet. (Perhaps, instead, everyone will own a $20 pair of headphones - or some sort of other technology for listening to music entirely - through which the difference between CDs and high-res files is obvious. I read one interesting, but somewhat vague, paper claiming that humans had been confirmed to be able to hear well above 20 kHz - using bone conduction rather than "through the air conduction"- which bypasses the mechanisms of the middle ear - which they claimed was "what limited human hearing to 20 kHz".)
As for DACs, I agree that no well-designed DAC should have high enough noise or distortion, or a frequency response far enough off-flat, that it should be audible. However, their transient responses can vary considerably depending on how their filter is designed, and I don't recall anyone doing any definitive tests about whether that is audible or not. And transient response is generally shown with an oscilloscope trace picture - so there is no single commonly accepted "spec" to compare. (There seems to be general agreement that time errors become audible at some point - but nobody seems to agree on where that line would be.)
I definitely agree with what I consider your most important point - which (to me) is that the single biggest issue with most modern recordings is the mastering itself. Very few modern CDs are produced well enough that they sound anywhere near as good as the format is capable of. I also agree that, for most people, speakers and the acoustics of the room they're located in also probably make a much bigger difference.
I do, however, disagree with what I guess would be the logistics of a few of your other statements.
Assuming that "the music industry" was monolithic, I agree that I would rather see money spent on better production values and mastering than on higher resolution. However, the production industry is not monolithic. The companies selling DACs are not the same companies who are producing albums. And the choice of whether to deliver a given master at 16/44k or 24/192k is merely a matter of picking a different setting (or, at worst, buying one new piece of equipment). In short, I don't see producing content at a higher resolution as "diverting funds from anywhere else". I also believe that the current obsession with high-res content, even if it turned out to be technically meaningless, is still "a step in the right direction", because at the very least it encourages people to pay attention to the technical aspects of the music they're listening to. (Given the choice, I'd rather have consumers wondering whether 24/192k sounds better rather than wondering if 128k MP3 files are "good enough for them". So I see the trend of simply paying attention to the production quality of the music as a good thing.) In other words, perhaps, if people really are paying attention to what the music they're buying sounds like, and are a little more demanding when they are asked to pay extra for a "high-res version", that will in fact encourage the industry to use better production values all around. (But I do agree that it won't help if people start assuming or imagining that the new version is better because it's high-res alone - to the point of ignoring whether it actually sounds good or not.)
I'm also a firm believer in "trickle down technology".... the idea that, if manufacturers of players, and amplifiers, and speakers, work to make their top end products capable of playing flat to 40 kHz, just maybe the end result will be that even their low end products get a tiny bit better - as better technology becomes "the norm". (Maybe, if the DAC vendors get more orders for 24/192k DACs, they'll drop ones that don't even work well at 16/44k from the bottom of their product line, which will mean that you'll end up with a better DAC in the next $20 player you buy - because this year's "cheapest DAC you can buy" will be a little bit better than last year's.)