Yes. Most people (and I mean 99%

are not audiophiling. (I do not consider home theater as audiophile, although it could be. From everything I have seen, it is a substantially different idea. Mainly use of surround sound and processors to achieve special effects which usually includes/involves exaggeration (eg, bass response). Ideas related to quality of sound regarding accuracy/fidelity of instrument sounds & voices including stage acoustics, noise levels, etc. are pretty much non-considerations. It is more important that a simulated bomb noise shakes the room or that a racing car sound pans. No one cares if the Stradivarius is accurately renditioned or if Anne Murray's voice is as if she were singing literally right in the room.
http://www.nytimes.com/2010/05/10/business/media/10audio.html?partner=EXCITE&ei=5043
In fact, among younger listeners, the lower-quality sound might actually be preferred. Jonathan Berger, a professor of music at Stanford, said he had conducted an informal study among his students and found that, over the roughly seven years of the study, an increasing number of them preferred the sound of files with less data over the high-fidelity recordings.
“I think our human ears are fickle. What’s considered good or bad sound changes over time,” Mr. Berger said. “Abnormality can become a feature.”