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The insturments were all jumbled together and the dynamic range was far too compressed. My cousin is a musician and I put her CD into the same system and I could swear she was standing next to me.
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You're talking about a conceptual choice between whether or not the sound design is meant to simulate a group of musicians standing in traditional locations on a virtual stage, or if they've decided to make it a purely musical experience that is not rooted in a virtual stage. And the choice to how much to compress, or rather the tendency to overdo it a bit, is - I would suggest - probably part of that elimination of the traditional virtual stage.
You might not like that choice, but given that few bands - when they are creating an album - are limited to the usual drum/guitar/bass/vocalist (even if that's what they are when on a real stage), it kind of makes sense. I mean, where does one put all the sounds that don't exist in that set up, which only exist when you're making a studio album? The idea of recreating a stage becomes just one choice.
But I was taking issue with the claim that the recording quality of today's recordings is worse. That's absurd. If Elvis were alive today he'd love a modern studio. And if the elder producers who are guiding the remastering of the Classics would turn their attention to the modern day, we might find that the inherent quality of today's recordings would provide them with much greater sound quality than those classics. Hopefully we'll find out some year soon.
I know it's a shock when you start hearing stuff you listened to in high school on the classic rock station but that's the way it is. Not much we can do about it. 
if the captains of that clownboat run us into a sandbar.
