The first time I ever heard of it was right here on A'gon, and I didn't get it either.
I mean, it seems to me that "pace, rhythm and tempo" is what the band either did or didn't do during the recording session, and if they did do it, the rest was up to the guys and/or gals doing the recording and mastering. I would have never thought that this was the function of the consumer's playback gear.
However, one of the upgrades I made that most grabbed my attention was in '99 when I replaced a B&K digital HT preamp with a secondhand Carp SLP 90. My initial reaction was, "So this is what "musical" means." But I was never able to put what I heard into words that I could use to describe it.