I agree... while I still prefer higher efficiency and SET amps it's true that the best cone 'n dome speakers are quite good. Wilson's XLF setup at RMAF a few years ago was great, TAD has been excellent and many others. I think conventional speakers are converging and are much closer to one another than in the past. One of my biggest issues is I've still never heard a truly great dome or ribbon tweeter though... my speakers have the TAD Be dome which is probably the best (imo) and it's not as good as my extended range mid + CD horn tweeter.
It's hard to ignore the recording when talking about dynamics though, I've heard an uncompressed recording of a drum set on large line arrays and still remember that as far more live sounding than most anything else I've heard. Most systems aren't capable of producing such wide dynamic swings though, so compression. I know dynamic range expanders exist but never tried one...
I would agree that box "cone&dome" speakers with well above average sensitivity (say 92db+) have a liveliness and seeming lack of compression that helps, particularly, with micro dynamics and for them to not sound so bland. Big Wilsons and Focals are a good example, with sensitivities in the 92-95db range. Wilsons have never been one of the most tonally neutral box speakers from a FR POV. Flatness of response doesn't seem to be a big Dave Wilson priority. What they do well is dynamics and distortion. They have low cabinet talk, low driver talk, low distortion from the motors of the drivers and relatively high sensitivity so they capture the micro pretty well. They have big driver surface area so they capture the macro quite well without compression. The FR is acceptable with no gross anomalies but it is far from Magico flat.
So, while a big Wilson or Focal can get near horn like dynamics it is also a presentation of the sound difference. Horns are more directional and tend to put the sound more out in front with an expanding bubble, while box speakers tend to have the images at the plane of the speaker or behind. I think preference for the presentation plays a part here.
The best I have heard from relatively compact speakers in this regard is Reference 3a and the little Odeon Orfeos I had a few years ago. My current "downstairs" speakers, the Odeon Rigoletto, are also quite lively with little power (93db/watt) and are what I would consider compact, being no bigger than a monitor on a stand.
I do not agree that box speakers with 86 or 87db and 4 ohm load (meaning they are really less sensitive) can get out of their own way and serve up convincing dynamics...micro or macro. They work best with compressed pop/rock where a good steady volume from low 80s to low 90s db is easy to maintain. The problem is that they just won't respond well to small inputs and so "gloss over" small details and they "round off" big transients as they compress. All the power in world doesn't fix this. From what I have heard from Magico (I have heard Q1, S5, Q3, Q5 and M5) they mostly fall into this category and I don't hear big dynamics here and things are, well, kind of bland compared to other, more sensitive, speakers. Of course I have mostly heard them with Soulution amps, which I detest. The best I heard from the above was the M5 with Spectral gear (DMA-360 monos), which was not bad at all but with unfamiliar music it was hard to be definitive.
Ribbons also need to be "woken up" to sound their best but then they run into dynamic limitations on the macro dynamic end ...unless they are very large or played at pretty moderate volume levels. Electrostats are a bit different in that they usually "wake up" at very low levels (even better than a lot of horns I have heard) so the microdynamics are well preserved despite the low voltage sensitivity; however, they run out of macrodynamic steam pretty early... unless they are huge and then they have pretty good headroom (my huge Acoustats covered the full dynamic envelope nearly as good as horns but the presentation was different). Problem is that horns generally need to be big as well...even if folded.
As for electronics, I have long felt that many SS amps and some tube amps that were using quite a lot of feedback sounded "compressed" like you felt the need to turn up the volume to get the sound to come out. This was an overall sensation and not so much what HP was referring to as a means to give a piece of gear it's "character" but I could imagine that being possible in addition to distortion considerations.