So he's talking primarily about pop/rock music, which is rarely meant to sound like the actual band in a live room. That went away decades ago. Hell, the Beach Boys, the Beatles and others abandoned accuracy for the created sound only possible from studio techniques in the mid-1960s.
With many other genres, however, there is a desire to capture what may be heard in a live space. But, even then, the recording process might be far from capturing a live performance and instead using tricks and processing to create a sound which the artists believes represents what they hear in a live space.
Just the same, I think the audiophile trope "hear the band in the studio" is just a misinformed concept of hearing exactly what the artist intended on the master tape. Being ignorant of the recording process led to this idea of hearing the instruments in the room, and with many great sounding recordings the perception of hearing real instruments in a room is so realistic they assume that's what they are hearing - the artists' goal.
