equipment sound bad?

I took one of my favorite recordings to a local shop and played it on huge $11,000 Martin Logans and huge Classe amps. My recording sounded "bad" on this setup, whereas I had always enjoyed it before and I think I know why. Because the system was so transparent, had so little coloration of its own, it revealed more accurately that the recording itself was not very good. I don't think there was a problem with the room, the components or the speakers. OK, the room did have some strong rear wall reflections, but for the sake of discussion, let's say that the system was near perfect.

So, here's proposition #1 - we audiophiles have devoted our souls to searching for better and better sound reproduction only to find that when we get there, it can be a less than satisfying experience. Ironically, we wouldn't know how bad the recording was if we had a more mediocre system. Is this our reward for the pursuit of aural perfection?

Proposition #2 - it's all about perception. What sounds great to you might sound bad to me. Should we pursue the most musical systems instead of the most technically accurate?