It doesn't matter what era you are in, nor what technology you had available to you, since recording first began with Edison sing "Baa baa blacksheep", practitioners (generally) have been trying their hardest to get the best recorded representation of the musical performance.
People use the technology that's available, and do their best with it. This point has already been made in earlier posts. People did not set out to deliberately degrade their recording efforts. I concede, though, that some studios were not as particular about their sound as they might have been: I was listening to some sixties music which was very poorly recorded compared to what else was available at the time. However, that too applies to all eras.
But I do agree with the OP to the extent that there are many cases where the technology and love of it has taken over from the quality of performance, and the ability to ultra-refine the music has, in many cases, robbed it of life, spontaneity and geniuneness.