no no, this is true of live too.... this isn't about the aesthetics of when a lot of distortion serves the song, its a question of how a room reacts to distortion, how it interacts with the band dynamic and also how every piece of gear capturing it will add distortion of its own as well as changing the harmonic balance in ways that might increase the audibility of the 'distorty' components of the guitars hamronics making it far more mushy than you think standing in front of the cab.
On live guitar? I did FOH off and on for years, guys use too much broadband distortion, they disappear in the mix and sound smaller even if they're blasting loud. Worse still they will get that big rectifier bass sound on their guitr and eat the bass sound so its an indistinct mush behind my great drum sound and no matter how much I tweak the PA the stage volume in anything less than 1000 seats will keep it muddy. Its like a tinny can of bees anyhere but in front of the amp or the very back of the room on axis with the front of the amp where a 4x12 wants to throw the sound, but then in the back it peaky, fatiguing mids and non-musical thumping. Its sound REINFORCEMENT, particularly in mid-sized and small spaces. I am filling in and helping, but I can't help a bad sound. It could be frustrating when you would talk to a young band who was dong their first decent sized show opening maybe and you wuld sound check get as good as you could and hit the talkback and go "are you open to a suggestion or 2 in roder to maximizethe impact you'll have on the audience? I promise that unlie most sound guys I won't suggest you turn your VOLUME down." and then they go, "no, we're ready to rock, good job on monitos, it sounds great up here. Most of the time the only faces gainiacs (and I love that term) are melting are their own. For indescribably distorted guitar sounds I would rather guys use in-ears and I get something DI like a fractal. You see more and more of that in the heavy world because they don't want to turn the distortion down but they need like a STUDIO mix to stand a chance of it melting the faces of even the 1st row. Alright alright, I am way off on a tangent. Maybe you got something from this though, I've been at this a long time, especially counting my non-professional time lately.
if you are really interested I can tell you so much more, but live is literally THE WORST with distortion from a dedicated amp/speaker rig with a mic on it. you're getting acoustic interference, bleed from the drums and bass, the microphone adds THD (and its usually a shit mic like a 57 where the crap output transformer adds gain and balances it but it distorts like a mofo when hit ahrd and on guitar? well, for recording uses I like to take the transformers out of 57s, try it)... then your console might have some THD , you might have a gate to help with bleed but that adds some clipping because there's gain staging in that VCA, compression at the desk? even justa cross the mix buss? even the cleanest comrpessors distort subtley at times and they are definitely grabbing harmonics and cranking them up making distortions sound more distorted.... PA speakers???? should I go on? Don't even get me started on EQ, even so called linear phase EQ has distortion induced by the phase shift of overlapping fitlers....
this is just applied science applied of course to the observations of a guy with good ears and a lot of experience with all different music situations
EDIT:
notice that though I mouth off on this forum ad nauseum, when I work with other people's music and I have an opinion I ask if its welcome first... maybe my opinion holds no water in some instances because murky can of buzz is what the band's vision is and their definition of good sound, because tis just subjective, these are generalities.... but there's a point where stylistically compromised sound quality is just bad sound that an audience doesn't connect with on a high level if at all... sometimes its just listener error on my part though and I always allow for that and if no one wants my thoughts on the sound I just keep it to myself and work with what I get
although this is why I don't miss commercial recording and doing live sound -- I'm super opinionated but super respectful too and it just gets me all bothered some days... tis better just to not do it for other people even if they beg! its not like there's money in it, its a labor of love
I mean, if you think you're melting faces and you look at the audience reaction and the reaction you see is face melt who am I to tell you those faces haven't melted and that they're a bit unsatified? If you're satisfied then I am wrong. If you wind up let down or unsatisfied or whatever though? don't blame me, don't get dejected. You made decisions x, y and z and people wanted a, b andc. If you wanted people to like you? you could pay attention to that audience and you could listen to people's suggestions.... if you follow your muse its all about you and you can't expect any specific reaction. If you make a challenging record with harsh sonics then be prepared for a negative response from the majority or to be ignored completely (at least initially) unless there's a real specific convergence of cultural factors making people unusually receptive. I think a lot of musicians aren't pragmatic and they don't manage their expectations. They want to be mavericks but they want to be loved too and its great if you can be both but its hard. You have to decide if in music Machiavelli applies...
I am way off in left field here but maybe someone will take something from this and it will inform their work and they'll do something special in the studio or their shows will get better or different or whatever and they'll better manage their expectations and their working relationships which will help them have a signature sound... its people behind the gear and on the other side of the speakers and that's kidna the secret of tone and just music.