Musicians in your living room vs. you in the recording hall?

For me, it all depends on the mood which in turn drives the content at that time. And in both cases, unfortunately I can tell the compromises that are made by the quality of my system and the room. 

That's right viridian. In most modern electrified concerts there is not any imaging. But in smaller venues there may be like a jazz club, a choir in a church or a symphony orchestra will have wonderful imaging and loads of ambiance. A string quartet in a hall, imaging and ambiance to spare and a good recording will capture all of that and that is what I want to hear. 
If you do not go to these events you should. Close your eyes and listen to each instrument individually. That is what you are shooting for, the sensation that you are there at that time in that space.

Neither really. All I want is to hear the recordings as accurately as possible. I dont consider my system a substitute for live music. If I want to hear musicians in the flesh I leave my listening room and go out.