What is meant exactly by the description 'more musical'?

"Musicality" is clearly not a technical term - how could it be? Of course that applies to a lot of audiophile jargon, to varying degrees. 

Best to keep it simple. I think it usually means "I really like this", or in the context of direct comparisons, it can be applied to one component to put the other component down "softly" - rather than a flat out "I think that one sounds bad". Unfortunately most of us spend too many words skirting around what we REALLY think of something. 

Musicality is about room, speaker and component matching. Some experts say dsp can compensate, but I've never found a dsp able to change a speakers fundamental sound enough to fix the room and component misalignment instead you get a flat measured response lac king in dynamics. I'll qualify this with. Component matching for great results can bankrupt the average Joe.and with that consideration developing a relationship with a dealer can save money in the long haul. 

+1, absolutely my experience. And I don't place room acoustics above the importance of component matching. They are at least equally important.