Recorded music is "processed" by the engineer and a BUNCH of equipment. In the old days, it was mostly tube gear. If you are unfamiliar with that, visit an "old time" recording studio. Digital music uses "chips" that process "bits" and drop many of them that it considers "extraneous" to the final product.
As for "realistic" reproduction, I have yet to hear anything better than the ARC/Magnepan combo set up correctly playing either master tapes or direct-to-disc recordings, both of which are "processed" as well.
As for our friend with the guitar and amps, standing on the side of the stage in 1972 and listening to Duane Allman and Dickey Betts play live is about as close to "real" as I have ever heard.
Cheers!