Syntax, I could not agree with you more. I disagree only with the implication that because the goal of achieving reproduction that is faithful to the sound of real music was difficult to achieve, the pursuit of that goal was abandoned. The pursuit of that goal was abandoned by audiophiles, not the High End Industry as a whole. I believe that there are still manufacturers that pursue that goal. The problem is that audiophiles not only "forgot" what real music sounds like, but younger audiophiles never learned.
This, ironically, is also the reasons that too much validity is given by some to the idea that because something is technically "better" than something else, then it must be better overall. Not so!
Audiophiles seem less and less willing to accept concepts that are not easily quantified or explained rationally. In an era of so much technical advancement, it is easy to understand why this is so. The problem is that we are talking about music. And music is an incredibly complex, subtle, and organic thing. It expresses human emotions. I find it incredibly arrogant, and not very insightful, that some think that they can fully explain what is going on in music, and it's reproduction, with numbers and technical measurements. In my opinion, to not understand that a certain amount of subjectivity is every bit as valid, in absolute terms, as purely technical analysis, is to not fully understand the meaning of music.