I remember reading an interview with Donald Fagen and Walter Becker many years ago. During the interview both men discussed the production of Katy Lied, and their frustration with a new 24 track reel to reel tape deck that was supposed to offer state of the sound reproduction at the time. Fagen stated that no matter what they did with this audio component, they could not get the sound they wanted. He also said that after dealing with one unsuccessful take after another he was tempted to throw the tape deck out a window of the multi story recording studio they were working at.
IMHO, despite how great the songs on Katy Lied are, the sound of the album is very flat and one dimensional. Completely lack luster. A far cry from the wonderful and dynamic sounding production that Aja would be a few years later.
So I'm not surprised to hear that a remastering of the original album would still leave much to be desired, as much as I really enjoy the music on the album.
IME, fidelity wise, Katy Lied is one of the worst sounding albums I have ever heard.
And I have always lamented about this given how much I love the songs on this album.