Say you have two home theaters:
Room 1
12 feet long x 10 feet wide x 9.5 feet high.
Genelec 8361A as LCR, 8351B for all surround and overhead locations, and 2 x 7382A subwoofers.
Room 2
17 feet long x 14 feet wide x 9.5 feet high.
Meyer Sound Acheron Designer as LCR, some model of HMS or ULTRA-X20 for all surround and overhead locations, and 4 x X-1100C + 4 x VLFC.
At equal SPL levels at the listening position, will both setups sound equally as "impactful" and "visceral"? Also, will 2 x 7382A subwoofers in the much smaller room sound as "impactful" and "visceral" as 4 x X-1100C + 4 x VLFC in the larger room?
Your thread opening question is a good one!
Your two room examples and systems are ......yikes...well, not in touch with reality (not trying to offend).
Room 1 is very small at 1140 cu ft . The Genelec stuff *might* fit in such a small room, for a ball busting system.
Room 2 at 2261 cu ft is not that much bigger than #1, and the Meyer gear is crazy overkill. Heck the subs alone take up over 7% of the room's volume. The Genelec stuff is still more than enough.
(And this is coming from a true SPL/dynamics/bass junkie, that most everyone would call nuts.

)
Ok, but to answer your thread opening question as best I can...
Like at least one other alluded to, it's average SPL with headroom for transients.
No matter how high or low average SPL good dynamics require sufficient headroom above the average SPL.
Headroom means uncompressed and unclipped peak SPL for short term transients, across the entire spectrum top to very bottom. I
The headroom is a function of both drivers' peak excursion capabilities; and the amplifiers ability to drive those peaks.
All speakers from small to large, will have better dynamics given such headroom.
The higher the average SPL, along with the requisite headroom, will sound more dynamic in comparison to a lower SPL system with requisite headroom.
But a higher SPL system without headroom, may sound less dynamic than a smaller average SPL system with headroom.
Excursion capability, and the amp power (or rather voltage) necessary for the headroom is the name of the dynamic game ime/imo.
Most folks seem to be concerned with thermal compression, but that's usually not the issue taking away speaker headroom, which by definition is for short term transients.
Lack of headroom is most likely first due to amplifier voltage limitations, and seconding drivers reaching excursion limits.
This prosound vid is about driver power handling, and mainly for subs and larger low/mid drivers. But it has some very good explanatory material on why headroom is important, and what short term power capability is needed for it. I started well into it...whole thing is worth a watch if you're into SPL and bass.