Can a system sound too Holographic?

No

@aniwolfe 

I agree with your friend. A soundstage that is too holographic is not natural. Music emanating from a live soundstage is never too deep or wide.

In the 1930's Bell Labs determined that the best simulate the sound of an orchestra in a concert hall with proper acoustics, there should be three channels, the center channel playing the sum of right and left channels. Magnepan did listening tests with untrained audiences who preferred the sound of an orchestra in three channels. A center channel which has buffered inputs from the left and right channels is the way to do this. 

I wanted more holographic sound despite having two pairs of Shakti Hallographs.  I purchased a GIK Q7D quadradic diffuser for the center mount between the speakers front wall and that made the soundstage pop from center as well as spread the sound for centerfill-EXCEPT in recordings, particularly 50s stereo jazz and pop where they were recorded left and right and no middle or just one instrument in the middle (Kessel in trio on Contemporary, or just right and left as in Command Percussion pop LPs).  One of the two major reasons I want to replace my speakers is to obtain an out of the speaker sound and the other to obtain wide seating dispersion/imaging.  I have basically a one person speaker.  Von Schweikert is the opposite of dispersion compared to Duntech/Dunleavy/Legacy Focus speakers (the latter of which I have along with a much better dispersion speaker Legacy Signature IIIs). 

@drbarney1 +1 absolutely!  Three channel recording of orchestra provides the best orchestral sound reproduction.