I've been using the Ayre Irrational but Efficacious CD for years now and wholeheartedly concur with what you say. I can't explain why things sound better after using it but it always does.
I know demagnetizing is one aspect but I feel, deep down, that something else is going on as well. I also found that using it, repeatedly, over the course of breaking in something new, speeds up the process.
All the best,
Nonoise