This is an excellent, thought-provoking topic, and one close to my heart. There is indeed a schism between the resolutiion-above-all-else crowd and the musicality-above-all else. FWIW, I’m in the latter camp.
The OP’s salient question: "BUT is there such thing as too much resolution and detail in a stereo system’s sound presentation?"
Yes, absolutely. Look at it this way: any audio system, either a mix ’n’ match assemblage costing $2-$3 grand, or a whopper mansion system costing $500K, can’t touch live music in terms of dynamics & power. All audio is a subset of real music played in real spaces. Given that, an over-emphasis on "detail," the leading edge of notes, transients, and so on, becomes an amusical (ie, unlike music) characteristic. It annoys my ears and always has, but a lot of people chase that sound and spend bushels of dollars on it.
I always go in the other direction: I chase audio that gives me a big, juicy kiss of musical realism. It’s not pure resolution I’m after; it’s a slice of the low frequency punch, resonance and spatial quality of real music that I chase. That might mean tubes, or it might mean solid state "voiced" to sound more like music than a flat, forensic Venn diagram of music And when it comes to digital audio, it definitely means multibit or (even better) non-oversampling tech that restores some of the body of reproduced music, body that is often robbed by delta-sigma chips.
I’ve heard so much music live, all genres, including lots of classical and jazz, as well as power rock from my earlier days. Particularly in classical and jazz, which tend to be minimally miked, I’m never aware of "resolution," "detail," "plankton," any of the audiophile buzzwords. IRL "detail" encompasses dynamics, reverberation, resonance, spatial qualities, tonality, and the articulation of musical notes played on real instruments. In music IRL, detail cannot be separated from all the rest (unlike audio, in which detail can be prioritized above all the rest)..
I count myself very lucky to have found a few components over the years that give me a reasonably good approximation of real music played in real places.