Much of what people are complaining about has more to do with (in the case of re-issues) picking the correct masters, and in all cases, getting it right at the mastering point.
That is not to say that format (CD vs. DVD-A vs. SACD, or Blu-Ray) and the recording process do not have a significant impact.
Mercury Rev recorded their "Deserter's Songs" release on 35mm Mag. A more obvious highpoint recording is the Cowboy Junkies' "Trinity Sessions." On CD, these records sound outstanding, and would love to own these titles on SACD.
I think there are a number of reasons why there are (still) so many atrocious sounding CDs. Some of this is an echo of what Nap. has said:
* On re-issues, EQ'd masters for non-digital formats continue to be used. There are people like Steve Hoffman fighting the good fight, but they are the exception, not the rule. The best example of what needs to be done for re-issues is exemplified by the very stupid story around Kind Of Blue.
* The number of people recording has gone up, while the percentage who actually know what they are doing has not been maintained.
* The number of people mastering has gone up, while the percentage who actually know what they are doing has not been maintained.
* CD is not a very forgiving format. Frankly, I'm amazed at how far we have gotten with sound improvements related to the format. However, there is Mo' Better out there. CDs need to go away. The new "bottom" for audio recordings should be DVD @ 16/48. Personally, I would like to see the floor raised to stereo 24/96 LPCM, which will play on _any_ DVD player.
* The equipment people use for playback continues to improve at a given price point. I am still amazed that with a couple of grand worth of stereo equipment, I can listen to a DVD-A of early Elvis Presley recordings and be able to tell whether he was cutting the vocal in a booth, or out on the floor with the band.
Sorry if this came off as a rant.