Prop 1 is the subjective way. Listen to live music then pick equipment that your memory tells you is what those instruments sounded like. Prop 2 is the objective way, pick components that measure well. You can add the subjective sound good to you also if you wish.
Hello Baeur
I do 1 and 2 and I find it works really well. Why the division between the two?? The whole thing about live instruments as a reference is kinda bogus to me. I don't know about what you hear when you listen but to me most CD's are different from each other. Very little sounds the same even between songs on the same CD. There is so much variability in the source depending on how it's mixed and what effects are used I don't see the connection. As I see it every disk is it's own reference and idea is to get a system that lets you hear what's there. To me if they all sound a bit different you are going in the right direction.
Rob