Louder is not really worse when it comes to music. In fact, try turning up whatever you're listening to right now--it'll actually sound better!
The loudness wars (mass application of massive compression that reduces dynamic range) are the music equivalent of adding salt to savory foods. People like it better even though it's technically "worse".
Compressed audio works better in environments with a lot of ambient noise such as cars. Since this is where most people listen to (and discover) the majority of their music artists are adjusting to their audience.
Those are 2 different kinds of loud making your point sort of moot.. The former is about amplifying every frequency with the same amount (well, within limits of whatever harware you're using), the latter is about amplifying certain frequencies more than others resulting in relative differences between instruments getting smaller.
Compressing means giving up on the dynamics. It's a lossy process. E.g. the drummer started a subtle crescendo, that lasted a few bars, and now it's gone because everything sounds the same.
The loudness wars (mass application of massive compression that reduces dynamic range) are the music equivalent of adding salt to savory foods. People like it better even though it's technically "worse".