That's true, but it's also true that compression was originally a necessity for the dynamically limited LP medium.
With the advent of CD in the 80's, with 30-40dB of extra dynamic range available, instead of mainstream recordings becoming more dynamic they've become increasingly less dynamic since.
Worse than that is that speakers and amplifiers have also increased the amount of dynamic range that's possible from a domestic hi-fi system.
So with all of the technology and hardware heading in the direction of greater dynamic range, music has decided to head in the totally opposite direction since about 1982.
Sure, not everyone listens through a home hi-fi system, but with digital mastering automation these days it would actually be very simple for artists to release an uncompressed / flat mix download for those who prefer to listen through a hi-fi / AV system at home.
Also, with the power of modern DSP, the future should be the empowerment of the end user to decide on their preferred level of compression and bass / treble equalisation etc. There will soon be no reason to compress / limit at the recording / mastering phases when it can be just as easily done at the user end of the chain.
In an ideal world, that is a well equipped one like yours or possibly mine, 50dB of dynamic range is possible but it stretches the limit of even the very best high end audio gear, especially as you approach the noise floor of the room. If you have a room with a floor of say 46 dB and you want to play the full range of the orchestra, you will frequently be hitting peaks of near 100dB SPL. Now, that's very possible with the kind of gear we're discussing but it still leaves a problem: what do you do with the very softest sounds? You're not going to enjoy and hardly hear a gently played instrument that is recorded to be just 1dB above the noise floor of your room. so in practice, some compression is inevitable depending on the recording technique employed. This is more so in pops since most end users don't have systems capable of 50dB of dynamic range above the noise floor.
I do take your point, don't misunderstand, but CDs didn't technically reduce the requirement for compression (or companding) in production and to a very real extent in mastering since a good engineer still has to create product that is playable on a range of systems, even if he aims to cling to better standards. While 16 bit is able, the reality of playback is not as amenable, even in well found systems like ours. Where we likely agree is that "they" can do better than 20dB of dynamic range for pop music, but as I said at the outset, I don't buy "that stuff" if I can avoid it. Caveat: in works of a certain scale it is possible to get by with no monkey business. Probably why I enjoy acoustic music so much, bluegrass, Celtic and the like. It sounds real and it sounds great when done well, it goes soft to loud musically.
Almost everything you buy over the counter has been compressed or limited, either individual tracks or the master. Ironically, audiophiles gravitate to the noisiest and least dynamic media (LP, tape) like bees to flowers. And of course, where would the tape based recording world have been without Dolby A or dbx? Compander based, all. I suspect the (acoustic) noise floor is the problem with playback of digital, whereas with the analog media, the problem is at the top of the energy range AND at the bottom.
But yeah, the loudness wars are a drag.