Instead of theorizing, let's discuss a practical example of the importance of a system's ability to resolve small details.
In another thread, we've been rejoicing over the music of the Jacques Loussier trios. In most recordings of the trios Loussier formed, there is exquisite drumwork, first by Garros and later by Arpino. Exquisite in the sense that they are often just barely touching metal and skin, with sticks, poms and swizzles. You really have to see them live or see the DVDs to truly be able to appreciate with what tenderness they add details to the overall music being created.
In fact, a lot of systems aren't able to resolve what they are doing at all - either not playing back anything one is capable of discerning, or else making a hash of it because nuances are missing.
So - we have very small musical details, and within those there are, of course, changes of dynamics.
A very good system tells you more about what is going on than a bad system. If there is general agreement that the word microdynamics is to be used to describe precisely those low-level near imperceptible changes in stress by the musician, that's OK.
But then it doesn't help much when the term is also used to describe a finger sliding on a guitar string, notes being turned or a singer breathing (those are artefacts).
I've had fun just playing the soundtrack from the DVD linked to below, without an image, to check whether I then hear what I am easily able to hear when I watch the video and can see Arpino's actions. There's little doubt that the image helps my inner ear better discern the minuscule details Arpino is working with.
And that is probably also the hallmark of a very good hifi-system: that it is able to see deep into the recording's true details, without the benefit of a video assist.
http://www.amazon.com/Jacques-Loussier-Trio-Play-Bach/dp/B0007X9T98