Bill,
I think much of the discussion in high end is ingenuous - a 'whore in Dior' if you will (thanks Paul, always liked that one hugely!!

). The reason is that in all marketing one must strive to confirm what the punter wants to hear, otherwise the mood is lost and sale will not close.
This is not so cynical as might appear. I have enjoyed dialogue with SL, and once suggested to him that he try a power supply I'd devised for his active crossover which had profound effect on the presentation of his Orion. Aurelius can testify to this; he has one. But SL rejected it with such vehemence I had to ask my wife if she too thought I was mentally defective.

Wayne of Bolder Cable is now fitting a variant of this technology into his Ultimate Power Supply for the Squeezebox, and the effect is no less astounding. It costs $US1500 and demand is ramping up. See here:
http://www.audiocircle.com/index.php?topic=47138.0The new power supply has marked sonic impact, but only those skilled at listening with an open mind will acknowledge this because it flies in the face of convention. SL, Stereophile, and many of the EEs involved in audio have a confirmed view that such things do not make a difference; yet materials science will tell you that if you make the strings of a violin from a different material, or use a different wood, or shellac, or bridge geometry, or bow hair, or bowing technique for that matter, the sound will be different and the cognoscenti will pick it immediately. I would suggest that the same happens in electronic circuits which process audio signals - and I now know that each and every component choice is important, and so is the topology, and so are the operating points, and so is the nature of the metals and dielectrics, and the list goes on......
Example: A child learns violin. At first, the sound is terrible, sharp, screechy, pungent, unpleasant. Then a virtuoso plays a single note, but bows with a certain technique and applies vibrating pressure where the string meets the board with an elegantly positioned finger. The result: the note is the same tone, but it sounds wonderful, longing, mournful and somehow tugs at our heart strings. How is this, and why does it happen? And how does one identify the skills which make the difference?
You touched on it earlier - harmonics. The H2, H3, H4, H5, H6, H7 all bunch up to give the note its timbre. The relative proportions of these harmonics has profound effect on the psycho-acoustic equipment of the perceiver - an organic, mammalian lifeform. A trumpet played hard has around 0.05% additional H9 and H11 in it; yet while this is difficult to measure, it is plain as the nose on our face to a human listener. The perception of just a tiny shift in say H7 is profound, and it is these harmonic subtleties which make music for our souls. Any machine which alters this harmonic distribution, even subtly, has the potential to completely alter the psycho-acoustic perception and this, I believe, is why two amps which measure the same will sound different.
Notice that these effects happen primarily at the higher harmonic end. H2 and H3 has little effect except to convey the loose, vague terms of warmth and sharpness. It is the higher harmonics which are profoundly influenced by electronic amplification due to the crossover event and the vagaries of feedback; the speaker, as a mechanical transducer, tends to influence lower harmonics, although the passive crossover is something else again.
This has led me inescapably to the conclusion that measurement is not enough. It is a first base, perhaps, but it does not go the country mile and certainly does not guarantee an exceptional amplifier. Only a mammalian ear with a highly trained (and articulate!) perception can distinguish the various levels of sonic subtlety to create a good source/amp/speaker, and this is why good designers like Nelson Pass are accorded god-like status because not everyone can do it, little of this skill can be found in a text book, and these guys ain't talkin'.
Of course, it helps if they have an open mind and realise that everything makes a difference, and then are prepared to cremate thousands of silicon devices chasing sonic rainbows......
But not everyone does have this open mind; the more education one receives, the more the mind focusses, and this can close a good mind right down to the point where the eyes almost merge..... and education is a seductive thing, it is a club like any other, and those not in the club are shunned, because they did not negotiate the rites of passage by taking the same punishment in long, boring lectures!! The aggression and ego I see daily on DIYaudio gives clear indication that wars will always continue and man will continue to prefer ideology over any misplaced love for the race, but this is an aberrant view I should not purvey.
On top of all this is the need to appeal to the consumer's pocket. One must be politically correct. Witness the party shenanigans taking place as we speak in Oz, with a general election tomorrow. The voters must read between the lines, because to actually come out and say exactly what is on our leaders' minds would be wholly unacceptable and might jeopardise winning. And so it is with audio......
Thanks for a great discussion, Bill, Lyn.

Cheers,
Hugh