There’s always that perfect balance to strive for, but it’s subjective, and every room and system is unique. Just the right synergy of the right combination of components, room, and cables is all you need. (which is always easier said than done!)
I’ve chased higher resolution for years, and sometimes it just reveals more issues to chase, but at some point within the last few years it all started to come together nicely to where the system sounds more like music with a sense of space and natural realism.. I never could afford expensive component changes, so went about refining what I had. Unfortunately, there’s no single definitive path to achieving that perfect balance, in part because we all have a different definition of it. It can be a single component or room upgrade, or a slew of smaller things that close the gap. It’s a puzzle, and a unique journey for all of us with an unknown destination. That’s what keeps some of us chasing that nirvana for so long.