Most rock music gets mixed, equalized and compressed in the studio. This doesn't happen on stageFalse. Every pop/rock commercial venue I've ever been to had some sort of mixer/PA system for music. In the pop/rock world live, unamplified sound is virtually non-existent. Amplified concert performances should not be used as a reference for how real music sounds.
There are times when a recording engineer is actually trying to accurately capture exactly what a musician playing a real instrument in a real acoustic space sounds like. But this situation is really not that common (at least in commercial music production). Recording is more akin to making a commercial Hollywood style movie than a documentary film. In movies to make something look or sound real is the result of dozens of crafts people doing everything but what actually appears on the screen. It sounds silly, but things have to be more real than reality or else it doesn't appear real on the screen. Filming a scene that is supposed to take place in the rain is a perfect example. Real rainfall doesn't film well -- you need fake rain. It's a very similar situation with recording music. If you just placed two microphones midway back in a concert hall and recorded the output, it probably won't sound very good, nor will it sound real.
Just like anything you can push this fake reality too far. The trend in audiophile sound reproduction over the past two decades has been toward an overly detailed sound. It's as if we want a nearfield listening experience sitting 10 feet from the speaker.