DSP is a tool. it’s neither good nor bad. and can make perfect sense when it is the best approach to solve the problem. but DSP is not free. it costs musical essence. and there is the 2 channel case, and the multi-channel home theater case. they are separate subjects.
for 2 channel i think at the lower price levels of speakers in rooms with issues it is a good choice to consider if one wants full range performance. but again DSP is a tool for situations when it allows for better ultimate performance. can DSP help more than it dumbs down the music? it can be much more realistic to solve room issues with DSP than to change around a living room or other imperfect room. how restricted are you in system set-up and optimization?
OTOH once you get into dedicated rooms and higher end systems then the signal path purity becomes the priority and making the room correct. the idea is to eliminate the need for DSP as a tool. DSP can also be a dead end to system development. it drags down musical essence as you try to find better sound.
i do not know anyone who uses DSP in a 2 channel system. and have not heard a DSP system for 2 channel that i like. my Home Theater uses the Trinnov processor and has 9.3.6 Dolby Atmos speaker system and does movie soundtracks great. that is a proper use of DSP.
there are some interesting uses of DSP such as the BAACH process, and maybe some others too. lots of extreme opinions. but for my money i want a pure analog signal path and have no interest in DSP for my 2 channel system.