What component is responsible for dynamics ?

Agree that if you want the full range of dynamics, both macro and micro, highly efficient horn speakers are the way to go. This is one of their biggest advantages over other speaker types, and I want to emphasize that this is not just on the loud end of the spectrum, but the very soft end also.

Yes, Unsound, your last post doesn't make alot of sense to me, either. High efficiency speakers, especially horns but also other types, are well known for very high quality at the very softest dynamics. This is one huge reason why so many professionals prefer them. I have never found noise floor to be higher in high efficiency speakers, quite the opposite in fact.

To this "hi-fi" vs. "realistic" discussion. I agree that that is how most audiophiles use the terms. However, we should not equate "realistic" with "real" in this conversation. Much as I appreciate the very best high-end audio can do, it cannot and will not ever be mistaken for a live performance, even in a world class system set up correctly in a world class space - one could tell the difference instantly.

I would have to agree with Csontos, Atmasphere. Even in the recording studio, it is very easy to tell the difference assuming we are listening to particularly wind instruments or the human voice. Even stringed instruments and some of the percussion should be fairly easy, assuming no amplification. Now if you get into electronically produced sounds, then yes, I agree in a studio you could be fooled.