In instruments, resolution basically is a product of two performance characteristics, detection sensitivity and noise, that work together hand-in-hand. The problem generally is that when sensitivity is increased, so is noise….for example, if you increase the gain on a photomultiplier or an electron multiplier, you increase it’s sensitivity, but you also increase its noise. If you turn up the gain on an amp, you get more signal, but you also get more noise, so the solution is fundamentally simple…..find a way to increase the signal without increasing noise and the best way to do that is to increase the output signal while decreasing the input and intrinsic noise levels.
Hi-fi is no different….to increase resolution we must increase sensitivity while decreasing noise.
If all you do is increase sensitivity without dropping noise your system will start to sound less musical, because the noise is masking some of the additional detail and that hidden detail is simply heard as additional noise.
Bottom line, if you want to increase your system’s resolution to provide greater detail AND musicality, find creative ways to decrease the system’s intrinsic noise. The very best way I have found to do that is to address external and internally generated emi, resonance inducing vibration, DC power supply noise, AC noise, cable screening and transmission quality, jitter and clock accuracy, network traffic and cpu and switch noise and the areas most prone to these effects are of course the network supplying the data stream and/or the entire analog chain.
Make the necessary improvements and you will increase both detail resolution and musicality.