With all of the compressed media out there, is there a value to bring back the equalizer as a part of our system setup?
The need for equalization has nothing to do with bitrate compression. Any format can benefit from EQ. And as others have said, EQ cannot fix what lossy compression does, but it surely can reduce some of that glassiness that passes for "digital quality" internet radio.
Back in the late 70's I had an ADC Sound Shaper Two equalizer, and I enjoyed it very much for a few years. I was able to "shape" the music and accentuate or decrease frequancy output to my liking. I knew it was a false or second-hand adjustment, but it worked if done diligently. I'm kind of thinking it could be a useful part of a system today.
I had the SAE Model VII, which was very convenient for tone tweaking as it had both channels ganged on each octave band slider. And therein lies a big problem, especially for surround systems. How to make effective tone controls that are easy to use. Parametric EQ is not ideal for this. A tilt function, with adjustable inflection points would be more convenient -- if ganged across all outputs. So far, I've not see that.
I have on several occasions inserted a Rane EQ into the analog 2-ch path feeding my surround system so I could determine what manner of tweak to apply, but that's temporary. Once the fix is in the PCM file, it's out of the chain.
I find the more specific EQ tools, parametric or otherwise, as available in software like Adobe Audition, are great for really dialing in some specific corrections to specific songs, like applying a -4dB 60Hz Q5 notch in "Way Down Deep," so that the fix remains a permanent benefit in all future plays w/o having to dial in such a filter every time. The benefit also accrues to my iPod playing in my car system.
Only from the point of view that digital circuitry, which is what does the filtering, is intrinsically nasty stuff when operating at the same time as high quality analogue. Think putting the naked circuitry of a high quality preamp inside a PC, not a good move I'd suggest.
No need to put anything inside a PC. Nowadays there are many AV processors that have DSPs (running EQ and all manner of other stuff) that achieve excellent sonic performance.
Let me put a "whoa" on this....I understand completely that using an equalizer is not a panacea (as I said in the OP). I also appreciate the importance of room correction software et al, but that's not my point. All I wanted to find out is if using an equalizer would make a bad recording a little more palpable when using said equalizer. And if so, should we not reintroduce them into out systems? Now, if the equalizer route is a mistake (what were they good for then?), so be it.
By all means, use an EQ if it improves the result for you.
