Would I would say is markedly different from what most here have said ...
* Your system with its current set of components can be made absolutely magical or "real" if you eliminate all the weaknesses in it: that is, it has minimal unpleasant distortion
* Every recording you have or obtain will be totally enjoyable as a musical experience, if the system has minimal distortion, yes, even those appalling, recorded in the worst possible way horrors
* Contrary to what many have said, the room setup and size is NOT the way to getting good sound. Yes, fiddling with room bit and pieces can help to compensate for weaknesses, but if the sound emerging from the speaker drivers has too much distortion in it, then you have to work very hard with all that room stuff to try and compensate
* Get the treble right and everything else falls into place. Trouble is, it can be hard, very hard, to get rid of the treble distortion
* The Listening In Another Room (LIAR) method is an excellent test. Your aim should be to get to the point, where you can put on a string quartet recording, say, at close to maximum clean volume (for your system), go to the furthest point of your house, say, "yes, that sounds convincing, sounds like the real thing", then proceed back to the system, to stand a foot away from a speaker, and still be able to say the same thing. The tonal quality and sense of what is going on musically shouldn't change as you make that little trip