I've been an audiophile for 50 years and I've heard a lot of systems. IMO the idea that a home system should recreate the experience of a live performance is nonsense. It can't happen. Reason why is that a home audio system is speakers in your room and a live musical performance is real instruments being played in a real venue by live musicians located in three dimensional space. The first thing cannot reproduce the second. Any more than the best 4K TV with the best home theater system can reproduce the experience of actual military combat.
There are two parts to your comments.
1) The experience of a live performance to include the sights, smells, audience ambience, cannot be reproduced by a home system in the way actual military combat isn't replicated an action movie. I agree with you.
2) On the other hand, reproducing much of the AUDIO experience of a live performance at home is very much do-able with specific recordings/setups. The circle of confusion plays a big role. By that, I mean that the recording has to be done in such a way to reflect a live performance.
A lot of audiophile gear or "audiophile recordings" are focused on resolution -- hearing the "rosin on the bow of a violin" or hearing the singer wet her lips before singing something is a lot of "fun" at times, but also un-realistic and hyper-real. What I can hear on a high-end audio system is very different than what I can hear live from symphony halls.
So the engineer/producer have to approach the recording with a "reproduce" the live experience perspective. There are arguments for and against doing this, the same way the loudness wars are horrible for audiophile setups but great for factory car audio.
You then have to ask about music. Reproducing live classical guitar vs. full orchestras vs. rock vs. jazz vs. taiko drums all require different speakers/gear and recording techniques. For live music, it's not so much resolution that you hear but space, ambience, dynamics, intermodular distortion. The last two are particularly important when thinking about live taiko drums played outdoors.
For solo guitar, I think the Magnepan's with true ribbons do an excellent job reproducing the effect of being there live. I find voices and singers are hyper-real on the Magnepan with the ribbon tweeter presumably adding a lot of detail that I haven't heard live. It's still a really great experience even though it's not "live."
For rock music, I have JBL S/2600 Baby Everest DD55000's as my main setup. It rolls off at 16 kHz. It's very likely that the concerts are playing things back on JBL Professional Horns so that coloration is what I'm used to hearing in the concert. The concert scenes from A Star is Born are really effective at reproducing a live concert experience when played back on a JBL horn system -- not so much on the Magnepans.
For orchestral music, I have found that the detail I hear from the strings in the symphony hall is not as crystalline or clear as most audiophile setups. That is, I don't feel as if I hear "detail" in real life. What is superb about the real symphony is that the instruments due to blur into a mess -- you can hear each instrument section distinctly and clearly. There is no intermodular distortion in the way that it happens at high volumes with many speakers. Audiophiles talk about "massed strings" but really it's the whole orchestra.
Intermodulation effects is probably one of the strengths of certain speakers that don't measure well on the frequency response but still sound great. I actually find the easiest way to showcase the strength/weakness of different systems for intermodulation is with
The Echo Game from the
House of Flying Daggers Soundtrack . Compared to the movie mix, which sounds great on any decent setup, the CD soundtrack sounds like a bad mix UNTIL you play it back on a low IMD/low distortion system.
Another Day of Sun from the
La La Land soundtrack is also good about halfway through the track when you have the a lot of people singing simultaneously. On a low IMD/low distortion system, you can individually pick out each singers and follow their lyrics easily.
The reason it's a good IMD test is that at 65-75 dB or so, many speakers do a reasonable job. But at 85-95 dB, there is a big separation between good and bad speakers.