I can see why you say that. In the "Flat" mode, the bass is more closely aligned with the high treble.
I have to agree with @hardisj , though. I think the reduced bass mode will actually sound more flat, as the treble really doesn't start taking off until 2kHz. Almost all primary musical instrument notes are below 2kHz, and 2kHz+ is mostly harmonics. With the reduced bass mode, the speaker is essentially flat all the way up to 2kHz. Almost all the fundamental notes will be well balanced, with only the higher harmonics being accentuated. With the "Flat" mode, bass fundamental notes will be unnaturally loud relative to mid fundamental notes.
Just trying to make sense of the in room measurements versus Erin's listening impressions. The typical in room curve (as seen by the estimated response) is downward trending, whereas with these speakers and the bass cut, it's actually upwards trending. With some sort of boost/cliff in 400-1500hz range.
So one of the possible factors is the 3.5m listening position. So my first assumption is that the estimated response is 'only' accurate around 1m distance (correct me if I'm wrong)? How is an estimated response curve estimated to change for longer distances?
And given the speaker in-room measurements as seen (rising treble, 400-1.5k hump), my next assumption is that they should sound bright. Erin didn't think so though. But as you said, the impact of the rising treble might not be that obvious.
Finally, given Erin's comment about the 'bad' bass (in flat mode), the takeaway (for me at least) is that Klipsch selected a midrange with zero headroom and has distorted bass, hence the necessity for a bass cut mode that reduces bass (and distortion), which in turn made the speaker sound better.
Just my attempt at interpreting measurements, so feel free to correct my assumptions / takeaways.
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