Big difference.
You are listening to a great orchestral performance recorded in a great hall on a well balanced system. Think London Symphony in Kingsway Hall recorded by Kenneth Wilkinson for Decca. There is a passage in the score for solo piccolo. One hears within the soundstage a perfectly placed image of the piccolo with natural timbre and no placement waver. One can literally point to the image of the piccolo within the soundstage and say “There it is!”. Even as the piccolo ascends into its highest register natural tone is preserved with no high frequency splash making the piccolo sound the size of a tuba. Beautiful! “Actual” pin point imaging.
Then there is another passage where the piccolo is playing a unison passage with clarinets and xylophone creating a unique, even odd textural blend. The piccolo sounds as it should, blended and as part of the instrumental “mix”. Much harder to isolate it within the soundstage. Play this recording back on a system with speakers (or, whatever) which have an accentuation (distortion) at say 2000-3000 Hertz. If the piccolo is playing in that range (not uncommon) the sound of that instrumental mix will lose the sense of blend and the sound of the piccolo will be accentuated as well. It becomes more isolated within the soundstage. “Illusion” of pin point imaging.
“Perception?”, yes. “Reality?”, no way.