The Op is right all piece of gear must be balanced with one another, sound quality design wise and price wise...
But my conviction and experience is that it is acoustic/psycho-acoustic science which can make the greatest differences...
You cannot undertstand and control timbre at will, nor imaging, nor soundstage, nor LAV/ASW factor ratio by BUYING and only upgrading piece of gear sorry...
You must learn how to listen first, and this is possible only by acoustic listening experiments...Hearing is not MOSTLY a question of taste and pure frequency detection, it is an acquired HABIT related to a complex object : the soundscape...And the soundscape is not reducible to only the audible linear range frequency concept, but is constituted by phase information , time factor and timing, timbre spectral envelope, timbre time envelope, head and torso factors, many reflected waves management and TWO direct fronwaves management etc We must learn HOW to feel these various objects/concepts in our body/room ...
After that, through listening experiments not only we had learn how to treat our room according classical balance between the various surface of reflection/absorption/diffusion in relation to the room particular geometry and acoustic content, but we begin to learn also how to adapt our room response to the speakers needs and response and not only the frequence response of the speaker to the room...Speakers/ room are in a mutual adaptative process guided by our ears needs...
It is a MUTUAL OPTIMIZATION process with not only passive material treatment but also mechanical tuning with Helmholtz devices and method, essentially resonators and pure diffusers too...
Personaly i even use psycho-acoustic law of the first frontwaves and acoustic crosstalk and acoustic crossfeed with mechanical devices of my own creation located at some spot around the " head" speaker and the "tail" speaker, in function of EACH OF MY EARS listening location which is the "belly" of the "serpent", which serpent is my grid of Helmholtz devices circling the room...( 100 homemade devices)
Then there is a law which is not " the diminishing return law" or his twin conplementary law " the accelerating returns law ", two laws which are something like different perspectives on the same pudding and are so called "laws" about the gear...
But there is an objective/subjective acoustical/psycho-acoustical OPTIMIZATION LAW process which ask for an increasing learning ability to hear using passive acoustical classical room treatment but more importantly the mechanical acoustical tuning with Helmholtz method all around the listening position and around the room ...
The more important fact in audio is not the gear but acoustic and our own ability to learn HOW to hear and WHAT to hear...
It is not the gear because it is now easy in a mature audio electronic market to buy "relatively" good gear at reasonable price all along the price scale...
It is less easy to Optimize the system/room... it is here that improvement may be astounding, and more than most upgrades... In my case AT NO COST or very low cost...For sure my devices are not esthetical... I am not crafty nor rich enough to create them esthical...
For sure i dont claim also that room tuning will transform a very low cost design in an ultra high end one soundwise...This is not the point of this optimization law...
My best to all....