Very interesting thread. I think Schubert and Frogman have the best posts. Most people simply do not listen to live, unamplified music anymore. This does NOT invalidate that as the best standard, however, for the reasons they state.
IMO, the most distorted view is that of the bass. Many audiophiles demand what is a very overpowering bass compared to what live, un-amplified bass actually sounds like. This is because they are used to hearing cranked up, electronically produced, un-natural sounding bass, both at rock concerts and in their audio systems. This is quite easily proven at any audio show, which I have done several times, to the chagrin of someone pushing a subwoofer.....but I digress.
@Tgrisham - I would agree with most of what you said, with one huge exception. In this sentence - "the vast majority of music is studio recorded with the engineer's idea of what it should sound like live in person.", I would strike the last three words. Most recording engineers nowadays have absolutely no interest in having their result sound like live - they LOVE the control the dead studio gives them so they can make the music sound however they want, period, without being limited by a specific room.
@Newbee - Your last post is a good one, again with one correction. Rows D or E in a concert hall would be WAY too close to listen to an orchestra as large as that of a Mahler symphony!! A very great deal would be lost sitting that close! Even in the very best concert halls, sound travels back and also up. So the best floor seats are more like 2/3 to 3/4 of the way back - as long as they are not under the overhang of the balconies. The very best sets in the house for listening to a gigantic orchestra, however, would be center, higher up, on what is usually called a mezzanine level in many halls (not the very top level).