I'd read that years ago. Hardly peer-review-paper quality

but I do agree with the reasoning.
Peer reviewed? Recognizing your smiley face, we should nevertheless keep it in perspective. This was a blog post. That said, Sean Olive is a respected audio scientist and his considered opinion is worth considering. [Edit: I think you are talking the original paper, and not Olive's blog post, in which case I apologize for misinterpreting your intention.]
Anent the AR/Dyna tests (and others like it) one problem is the acoustic venue. You place musicians (or a loudspeaker) in a large hall and what do you get? The reproduced sound blends and merges with multiple reflections, losing much tonal specificity. Anyone who has ever gone to a live event (sonata, small ensemble, or orchestra) soon realizes that living room type loudspeaker phenomena just ain't there. Imaging, front to back depth, and all the rest.
I've mentioned this before, but one of the rag mags (I think it was
Stereophile but it could have been Harry Pearson's sometimes quarterly) hired a symphony oboe player to review amps and CD players. The idea was that this guy, sitting two rows behind the string section, would definitely know what live music sounded like. But as some astute readers pointed out, "Yeah, he knows what his
oboe sounds like surrounded by the rest of the orchestra, but does he know what the
orchestra sounds like to the guy sitting in Row H Seat 12 of the hall?
Also, the LvR (live v recorded) event is necessarily limited to a single instrument, possibly a few. To reproduce the 'live' sound of a symphony orchestra would require tremendous wattage and tremendous speakerage. I guess you could use multiple loudspeakers and multiple amps. The Grateful Dead wall of sound kind of thing.