It aims for the target curve chosen. AFAIK, every receiver company that sports this tech has both of the curves you are referring to: Audyssey curve (with rolloff), and flat. NAD takes it a step further, and introduces a third target curve, designed by Paul Barton of PSB.
Well, this is a can of worms. How would you define absolute SQ? OK, what I want to point out is that nearly every movie title you own is using the same mix designed for the theater. So, if we are to assume that we are all supposed to listen to reference level, then yes we wouldn't need dynamic eq/volume anymore!! However, I'm pretty sure only a small minority of folks listen anywhere close to reference level. You see, our human perception of different frequencies at lower volumes is not perceived equally. Look up Fletcher Munson curve.