I've always thought that the 3-prong plug is a safety feature that if the hot connection somehow touches the chassis, then it would immediately trip the breaker at your electrical panel. So you wouldn't be shocked by 120Vac when you grab the chassis.
In the case of my Eico HF-85, the power transformer is not isolated, because it was made in the stone age of audio. I have to mark the two prong AC plug's hot prong, and making sure it goes into the + side of the AC outlet, if I reversed it, I actually measured 120Vac from the chassis to ground. Before I found that out, I was shocked a couple of times when I was disconnecting my patch cables. I still have to install a polarized two Prong AC plug to eliminate the problem.
As far as I know, three prong is for safety, but it will generate something called "ground loop", not an audio upgrade.