I agree with most of your comments re expediency of format, higher order issues, overall enjoyment v. time spent 'tweaking and adjusting' etc., but a low level signal on CD, the sample of the original music, IS stair stepped because there's a greatly diminished number of samples available in the amplitude domain with which to sample it.
Sample 1Khz with a million amplitude steps and you'll get a fair approximation (sample).
Sample 1Khz with 100 amplitude steps and you'll get a staircase sample.
Now, play BOTH through the DAC and it's interpolation and the staircase will no longer be a building block of square waves (the interpolator takes that out) but it will still sound bad, it will still be a worse approximation of the original and it CAN't replace information that's been thrown away during quantization, it can only smooth out the steps between them.
So the samples on disc at low levels ARE stepped; the anti-alias filter will do it's best to recover what the original analog waveform WAS, but it can't know what happened BETWEEN quanta, it can only interpolate between what's there
with regards to the original topic, I think this has more than something to do with it