Where is WmAx?
Lets look into what you're saying. Real life has nothing do with it. You're not loading real life into your DVD player then hitting play, it's a CD, DVD, Blu Ray, whatever. This is the source of sound. Since sound is subjective, and art(CREATING, not reproducing), it will vary from person to person. The job of the stereo is to reproduce the sounds on the CD, exactly as the CD reads. Having a CD player that can do this is very simple, and already achieved. Next you need an amplifier to take the signal and put it out to the loudspeakers without adding distortion or skewing the FR. Also achieved.
Wires... Achieved.
Loudspeakers, the weakest link. The loudspeaker must produce the sound form 20Hz to 20KHz without deviating more then 1.5dB above or below the source. Hard? Yes. Impossible? No. Also, you don't need 5Hz to 40KHz. You're wife may call you a dog, but you still don't have their hearing. B&W have made speakers that priduce 20H to 20KHz, WmAx modded some Infinity Primus speakers to do this. This isn't the hard part. The hard part is removing the cabinet coloration and resonance from the speaker. It's not impossible, but it requires a lot of labor and would be extremely expensive to mass produce. So now we have a clear sound, from the speaker. No coloration. But what about the room? It's going to change that perfectly flat signal into a Californian beach. You need to Treat the room with bass traps and acoustics diffusers and the like, but how much? And where? Well, how the speaker produces the sound will tell you. This is the key point to having surreal playback. Sound emanates from life like sounds, at more then 1 axis. If you want the same realistic sound in your stereo, your speaker has to also have a flat off axis response. This again is no small task, but it is doable, and has been done. The normal train of though is to treat the first reflection points, but if you have clear, clean sound waves going there, treating that spot is going to suck up that reflection that gives you a sense of depth and realism. I once knew the proper way to treat a room for Omnipolar speakers but I can't remember it. Hopefully WmAx will see this thread and post.
Cost is one of the things keeping audio standards out of the loudspeaker arena, that and complexity. Most people don't want to go through all this to hear music, and are comfortable with what they have from their TV. Without a market, no product will soar, regardless of it's excellence.
SheepStar