Au contraire: a great performance can be moving even if the recording is suboptimal. A bad performance is bad regardless of recording or even live experience.
I remember a Los Angeles Chamber Orchestra performance in the Baroque series, where a full size piano was used instead of a harpsichord [LACO has an exquisite hapsichordist on hand, so this was a choice]. The pianist did not even keep the lid on (double entendre) and went for maximum dB levels, so literally hammered the fine plucking of the theorbo by master Schneiderman to death. So much for "concertare", playing together. It was a viscerally painful experience, and the audience loved it with a standing ovation as it was loud.
Concert hall was quite nice at the Colburn School. So no issue with acoustics. Just a self-absorbed ivory tickler ruined it all.