Ive actually seen more dynamic range in some of the heavy metal I listen to, it just depends on the recording. In almost all genres I've seen the range compressed to as little as 6dB during the attack (areas with constant sound) and about 12dB on release. One of the bands I listen to, Entomed, released several of their albums with no compression whatsoever. Personally I find the difference to be small, drums benefit the most from the wider dynamic range. It depends on the music as well. Rock or metal with lots of distorted electric guitars don't need a high dynamic range, since the input of the guitar to the amp is run through a compressor pedal in order to achieve consistent levels of distortion and tone (as an electric guitar player, I can tell you that without heavy compression on the input, it sounds like crap if you're trying to achieve a heavily distorted tone).
I disagree with the notion that dynamic range in modern recordings is as good or better than ever, dynamic range of the recording mediums are better than ever, but it goes to waste most of the time outside of movies or classical music.
I do agree that some dynamic range compression is needed, especially in music with varying levels of loudness, simply due to how masking works with human hearing. In pop, rock, and other forms of modern music (non classical etc) about 12dB-9dB is a good level to constrain a recording to, considering casual listening is generally done at about 70-75dB. This allows for a wide range of playback volumes without a loss of detail. Music played back at this level allows one to still be able to clearly hear a conversation, which occurs at about 60-65dB. Sound falling below this level, such as my air conditioner vents, which measures at about 45dBA, are entirely masked by music at 70dB. 12 dB also also a slightly greater than doubling of perceived loudness, and makes listening to a recording from 70dB to 95dB a pleasurable experience. With constraints of 6dB, or even worse, 3dB, playback above 80dB average is annoyingly loud.
Too much dynamic range compression ruins the ability to listen to music at an excitingly loud volume. Most of us turn the knob to -15dB for movies, during passages of loud sound with all 5/7 channels going, peaks of 105dB due to the combined sound from all speakers are not uncommon, yet none of us find this too loud, however, a constant volume with 6dB of dynamic range at this level would not only be very uncomfortable to listen to, but would damage your hearing rather quickly.
I'm sure that death metal fans are few and far between on this forum, but if you can handle having a listen to these two tracks, you can get an idea of just how different music sounds with absolutely no compression.
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