If one were to wear yellow glasses while skiing during an overcast day, visual improvement in the snow's light and dark shadow detail would be apparent. Those same glasses on a bright day would not be beneficial...
The improvements in your system may have actually increased the level of contrast above and beyond the original instruments of the musician.
Here, Hamburg is challenging the idea that items (1) and (2) are indices of neutrality. I thought this to be one of the more effective and relevant challenges to my original post, but no one seemed to run with it.
I think he has a point, and that point raises an existential question.
Let's look at the continuum of neutrality as defined in this thread:
At one end of the spectrum, you have a system that plays back, say, a 1kHz tone, no matter what the source. This is the anti-neutral system: everything sounds exactly the same.
At the other end of the spectrum, consider a hypothetical system that processes the source, and through the use of pattern recognition, seeded pseudo-random number generators, and large variety of sampled sounds, effectively replaces the source with something else. One violin might sound like a subway train, another, slightly different violin might sound like a jackhammer, a cello sounds like a babbling brook shifted one octave up and slowed down by 20%. So we satisfy criterion #1: different instruments sound more different. (They just sound nothing like what they really are.)
Similarly, using the same system, we look at the first n bits of any recording (where n is large enough to insure uniqueness over the body of recorded music) and use those bits to seed our random numbers to insure that each recording sounds completely different from all of the others. So now we've satisfied criterion #2 of neutrality: any music collection sounds more diverse.
This absurd system would be, by our operation of the term, more neutral than anything any of us currently has. But I don't think it would lead to improved musical enjoyment. So clearly, within the idea of neutrality we are making assumptions about truthfulness to the source, and consistency of playback.
Which brings me back to Hamburg's point.
If we consider a system that smooths out recording artifacts, we also risk smoothing out sounds that are real features of the music, making the system less truthful (i.e., it suppresses real contrast). In Hamburg's example, the divergence from the truth is the unwarranted exaggeration of contrast. While neutrality, as operationalized here, resists the suppression of contrast, it doesn't appear to resist its exaggeration.
So somewhere in the operation of "neutrality" there is a necessary condition that the playback system maintain truthfulness to some reference point or points. How, exactly, one codes that constraint, I don't know. But if it were coded, would it, in and of itself, be a sufficient condition for neutrality?