My goal is to get out and listen to live music at least once a week: mostly acoustic "folk" music, bluegrass, country, blues in a small venue. I prefer the local bar or coffehouse where I can sit where I want to sit for the best sound, if I get there early enough. The sound varies depending on where you stand in the room. I do not prefer venues where there are rows of seats, assigned or not - I can not move around to find the best sound.
In live music situations where I can move around and sit or stand where I want to sit or stand, I always enjoy the sound better than the sound of my stereo. (I also like to drink a beer when I listen to live music, which is why I prefer the bar scene.)
Back when I lived in Dallas, I would go to the Honky Tonks, ("Cowboys", Country 2000, Red River, the Top Rail) and would pay ten dollars to hear a "big name country star": Leroy Parnell, Steve Wariner, Gary Stewart, Exile, Rick Trevino.... There was the stage, and in front of the stage was the dance floor where people would stand to watch and listen, and people would dance behind the listeners. I could move about the dance floor, and I found the place where the vocals were the clearest and that is where I would stand. If I stood somewhere else, the vocals would be muddled. In a bar or club or honky tonk type venue, the quality of the sound depends on where you stand. I never went to the famous "Billy Bob's" honky tonk in Ft. Worth, because of the assigned seating up by the stage, and I could not stand where I could hear quality sound. I went to hear Gary Stewart once at Billy Bobs, and the sound and experience was so mediocre, I never went back there again.
So to answer the origional post, I prefer live music over my stereo, especially if I can move around the venue and not have an "assigned" seat.