...Buy, read and understand Toole's book...
and as Mr. Toole said just a few days ago up here regarding recorded music,
"It is a wonder it all sounds as good as it does."... and I agree with him...
as to the 'Circle'... I understand the underlying logic of this 'circle' - but at some point-> you have to trust someone in the chain when you hit 'play' on your home system...
having seen this
'Audio Circle of Confusion' as well as discussing the phenomenon for years with others who make and record music for a living - a few issues might be considered regarding skilled engineer's methods as they apply to mics, eq, room-ambience and effects during a recording - see #1 in the "Circle" illustration above...
many people here may know this - it may be interesting for those who don't... these methods have evolved over decades as engineers are often called to work in unfamiliar studios with no previous familiarity with its monitor system - therefore, it's always wise to 'not' fully trust what you hear when you're tracking/recording... watch your meters on each piece of gear in the signal chain, pay attention, use your skills and don't screw up... it's a 'do no harm' gig...
the same methods apply whether it's a world-class studio or an artist's home studio - or even if you know the room and it's monitor system intimately...
(1) microphone best practices have always been selecting the best sounding mic for a vocalist's voice or a player's instrument - if it doesn't sound great, or at a minimum, acceptable
(this is not subjective) - then try another mic, or more if possible, hopefully without interrupting the workflow of the session...
(2) no drastic amount of eq is going to fix a poor mic selection - and living with a radically eq'd performance may well be, or rather is almost guaranteed to be, seriously problematic at mix time...
(3) very minimal eq might be applied to a recorded signal - saving final eq decisions for mixing as it is preferable to have a signal that's not been radically altered before mix time... no fun having to live with a poor eq choice made when recording...
(4) ambient room quality where a performance is recorded can be treated in a pinch (with limits) using various treatments - gobos, baffles, pads - but if a poor ambient environment is insurmountable, you're recording in the wrong room/place...
(5) the only effects typically recorded with a mic signal are peak limiting and/or very mild compression in the mic's signal chain to the recording device - effects like reverb, delays, modulation effects are not recorded on the same track with the mic signal - and if recorded (which is rare) they're put on separate tracks from the dry, no-efx mic signal...
at the end of this beginning (of the recording process), there are other skilled engineers doing the mixing and mastering - and hopefully there's a quality end product after all of that... like I said at the beginning of this too long word salad -
"at some point you have to trust someone in the chain when you hit 'play' on your home system"...
anyway, that's my two cents from the cheap seats...