While Carlos was kind enough to try to explain the theory to me, I quickly became lost in the technical details; however, he was able to demonstrate a thorough understanding of the various techniques used in the studio to manipulate various aspects of the sound. He was also able to demonstrate that he could selectively manipulate various aspects of his system's sound. This manipulation was far more broadreaching than merely frequency response. The degree of flexibility was eye opening. Note that this is not to say that this approach is perfect or that it does not add certain artifacts to the final sound; however, this is a valid approach to the recreation of music in a home environment.
I have visited Carlos a number of times and can confirm that he does in fact have a stategically placed listening chair as well as supplemental seating to the side at a bench. He is a superb host, if just a bit obsessive compulsive. As you can tell from the photos, the room is packed with collectible equipment and software.