A key difference between live (unplugged) and reproduced music is this: Live instruments produce natural-sounding reverberant fields, but most home sound systems don't. For example, listen to a piano from the next room, through an open doorway with no line-of-sight to the instrument. All you can hear is the reverberant energy, but it sounds totally natural and convincing. On the other hand, very few sound systems will sound real when listened to from the next room, and this is because they do not generate a spectrally (and dynamically) correct reverberant field.
Excellent point. This is one of the easy tests that I have been using with speakers for years; does it sound realistic from outside the room?
Funny thing is that most people think I am absolutely crazy when I say this is a good test of the speaker quality! I have had salesman grab me and insist I sit in the exact sweetspot where the floor has been marked with masking tape....whilst I prefer to walk around... as a speaker that sounds right throughout the room is what I usually prefer. If I have to sit in a spot marked X for it to sound right then I don't need to waste my time on an audition