So how can a great system solve less than great recordings

I think that a lot of music is produced for radio or mid-fin listeners.
Someone has to be particularly focused on producing audiophile quality for it to happen. Since the audiophile community is a small percentage of the audience it isn't a big priority.
Most music I used to like seems to have little dynamic range and limited use of soundstage and imaging.. Sadly I often play music I'm only half into because it is recorded really well and sounds great.