I'll bet the house they had the midi setting wrong if the difference was dramatic. Have done this comparison with many experienced people, and in the Ayre room one year at a show -- nobody could ID which was which.
Should add that I would love it if a $50 or $250 piece of software made a solid difference -- given the cost of my system, it would be a no brainer.
No, the rep clearly knew what he was doing. Quite frankly, the differences in iTunes with and without premium
software for bit perfect playback is not up for debate.
I think Ayre makes superb stuff, but to be honest, their rooms are never set up correctly, and they never sound impressive at shows. They
seem more bent on displaying their gear then demonstrating the sound, so I am not surprised no one heard a difference.
iTunes is subpar digital playback IMO. It is worth exactly what they charge for it.