When I was researching a Home Theater room, I seam to recall an article about how 2 channel listening is more dependent on a balance bawneen reflections and damping whereas an ideal theater room would be very 'dead'. I believe the concept behind this was largely based on a multi-channel setup. Once you get into 5.1, 5.2.1, or 7.2.1, reflections are more likely to confuse the imaging. For 2 channel systems the soundstage, as you are experiencing, is dependent on the right amount of the right reflections. .
That being said,. I agree with others that pipe and drape may be affecting some mid / high frequencies, but you generally need to get int 4" or 6" rockwool before you start dampening the lower frequencies. It could be that these lower frequencies are passing through the drape, the vapor barrier, and getting nulled by the exposed insulation. If you can get some 1/4" Masonite, cut it up into squares, and start moving it around - hanging from the pipes and attached to sections on the studs, and measuring the results - that would be one approach. My 5.2.1 system and my large 2 channel system live in the same space (the horror). I elected to treat it for 2 channel and ignore the 5.2.1 since that's how I use it 98% of the time.