How much reality do you really need?

The real question to the audiophile  is, “how much reality do you need” to enjoy your system? Does it have to be close to an exact match?  How close before your satisfied?  Pursuing that ideal seems to be the ultimate goal of the audiophile.
The element of your imagination has to come into the equation, or you’ll drive yourself mad.  You have to fill in part of the experience with your mind.
But this explains the phenomenon of “upgraditis.”

" However, in my reality, I see blue and call it blue. You see (my) red and call it blue. There is no way to prove this is not happening."

I would ask: "does this matter and if so, why?" 

With enough distance from the movie (or audio) one can suspend belief and truly get immersed. But once you start to try to get too close, it becomes an issue that you're not really immersed. Ironically, distance leads to more immersion than simulation does. See: "And lastly, the question of immersion. 3D films remind the audience that they are in a certain "perspective" relationship to the image. It is almost a Brechtian trick. Whereas if the film story has really gripped an audience they are "in" the picture in a kind of dreamlike "spaceless" space. So a good story will give you more dimensionality than you can ever cope with."
Perfect observation!The function of real music (for me) is to ignite the imagination. Yes, live music does have a component of "sonic realism", but to me that takes second seat to what universe of sound I'm getting connected to: what is the level of performers, are they good interpreters, are their instruments inspiring and alive, or is the "performance" just an empty show played by puppets slaving for money. As audiophiles, we tend to obsess about relatively meaningless envelope of the sound, and stay royally oblivious to what matters most (the musical content).
Today we have audio equipment that can force very high detail level out of the recording, along with the errors, additions and deletions, and transformations of the recording process.
To get the original live experience back, we would need a reverse transformation that undoes the nasties of the recording process, but the audio industry (by large) plays ostrich, and acts as if this huge roadblock would not exist, and play dumb dumb and forces the exact reproduction of the deficient recordings, which can only lead to a deviation from the original experience.

I find that _most_ current ultra-high end gear focuses too much on the enhanced resolution aspect, creating an illusionary sonic envelope that feels very much real, but also quite a bit different from the original source. It traps you in the superficiality, and shuts down the imagination, which is the exact opposite of what a live performance does.
So, by getting even higher resolution we might be getting further away from the music itself.... yet, much closer to an imaginary perfected sensory experience. A great and fun endeavor, but ultimately a form of escapism: adoring the shape of sound while shunning the message of the music.

Most people don’t have a audio system capable of extracting 
everything on the recording ,the source turntable or digital needs to be at least $5 k minimum to be able to extract all the information , then proper cabling, solid electronics 
and Loudspeakers without question ,most cannot even reach the last octave into even the upper 20 hz region for example  a full scale orchestra and hearing all the instruments in place on the stage That is complex , maybe 10% at best have a Audio system of this caliber and at least $50k on average .Currently I am saving for a reference quality dac $5-7k, Holo Springs KTE May dac, or Terminator+,and Loudspeakers you can get a great speaker for  under $10 k  if you are lucky , the Spatial audio X3 with powered Bass come to mind with VH audio Odam Capacitor upgrade, which if sold retail would be over $16 k.