There is so much bad information on this thread that your penance is to read Harvey's big thread until you realize this too.
Yup.
My recordings all have no hiss on them (which troubles me, because all my favourite records seem to be riddled with it)
That's because mic amplifier circuit design has improved markedly over the past few decades and most of your favorite recordings probably date back more than a few years.
which I suppose is good, but the guitar just sounds so distant. It doesn't sound instant and in your face at all. Would that be due to the mic "capturing all the room?"
Maybe. If the "distant" sound sounds kind of phasey like when you stand right in front of a wall and talk towards it (or talking through a tin can telephone), then the effect is probably caused by early reflections off of nearby hard surfaces. You can reduce this by recording in a bigger room, covering hard surfaces (walls, ceiling, etc.) with something that absorbs high frequencies, moving the mic closer to the instrument, using a piezo pickup (with a lot of EQ), sitting with your back to the wall facing down the longest axis of the room, or some combination of the above. If it doesn't sound like that, though, it is probably
not the room causing your problems.
My guess? The "distant" sound is probably
not caused by the room. That said, improvements to the room are probably going to be useful, particularly when it comes to eliminating room modes (the effect that maccool mentioned where certain frequencies are massively emphasized and others are massively nulled out). For a small room, this effect can be very obvious. An eight foot room length resonates (major boost) at the C# below middle C (and, to some degree, every harmonic thereof), for example, and basically cancels out the C# an octave below that, give or take. A six foot room length resonates at the F# below middle C. In Google, "speed of sound / 6 feet" (or whatever length/width/height your room is) gives you a frequency in Hz, then look that frequency up
here.
The "distant" sound, however, is probably caused by the lack of bass response in that mic. Bass dissipates more quickly than higher frequencies as distance increases. Thus, people often perceive a lack of bass frequencies as being indicative of distance. (For more fun, read about psychoacoustics.) The AT2020 has a lot of bass roll-off, so if you're used to a boomy sounding guitar, you may very well perceive the lack of bass as being "distant". Using a mic with a flatter response curve (the MK-012, for example) will solve this problem quite nicely.
That said, whether you do this or not depends largely on what your goal is for the track. If it's a solo track, you clearly don't want it to sound like that. However, if it is part of a dense mix, once you slap a bass track down on there, you'll probably find that the guitar sits better in the mix
without a lot of that low end. It just depends on the situation.
The AT2020 has no proximity effect, so you won't get that really close up sound that you want.
Pedantically speaking, it's a cardioid mic, so by definition, it exhibits proximity effect.... It is diminished substantially by the bass roll-off, but it is still there.