Your reasoning is circular. Humans who go to performances of other humans playing instruments enjoy seeing other humans playing instruments. That should not be surprising. The question is whether humans as a whole intrinsically prefer seeing other humans playing instruments over hearing a "perfect" machine reproduction. And the answer to that question is no. There are plenty of humans who really do prefer the machine reproduction.

If you're still talking about whether people want to hear live covers, or recordings, I think it's an apples to oranges comparison therefore I don't see the point in it.