I agree, and believe it's more a function of the recording. And once more we have a discussion about gear on WBF that seems to disregard the recording, but focuses on a comparison to live music, which is a flawed perspective imo. Live music is live music, and recordings are done with the artistry of the recording artists placing mics, mastering, generally altering the recording to fit what they want to get out of it, how they feel the music is best presented, which may be significantly different vs someone listening to the performance live.
Once again we need to be aware of the circle of confusion wrt the recording and playback process, since there are no standards for systems and rooms used for recording, mastering or playback there is uncertainty in what is "correct".
http://seanolive.blogspot.com/2009/10/audios-circle-of-confusion.html
That said there are certainly ways to setup an audio playback system that can manipulate the soundstage and imaging, this is obvious. I'd also agree with morricab if the system NEVER reproduces recordings with pinpoint imaging, then either the recordings chosen NEVER have that type of presentation, or the system is setup in accordance to that person's personal preferences and doesn't present a fully accurate version of the recording. Nothing at all wrong with this, but it's simply not what was intended to be heard by the recording artists. This shouldn't be mistaken for thinking that "PPI" is simply an artifact of the playback system, this is not reality.
I think we should also consider that the playback system may be MORE accurate vs the system the recording was made on, in which case imaging will differ between systems, so it's certainly possible a playback system can go the other way and produce images that are more PPI vs intended by the recording artists. This happens all the time with many high end systems, especially ones with Accuton drivers and SS amplifiers. Some of these systems can produce images that seem to be unusually and unnaturally small, to the point it's hard to imagine this is intentionally done in the recording, and the solution is to introduce distortions to make image size larger. This can also go too far and produce images that are much larger than life. In these systems the cables and AC power quality can have MASSIVE effects on the presentation and image size.
Excellent post Dave. But I would like to add that the Circle of Confusion as defined by F. Toole addressed mainly tonal aspects, not the localization in the soundstage. F. Toole considered that stereo was a system deprived of proper localization and always dismissed the effort of the high-end and audiophiles to improve the system towards a more "realistic" playback.