Is Software EQ bad ?

I have some clear sounding speakers these days, something I never had before.

..and I've become convinced that software EQ is bad..

When I play music straight through the amp (no software EQ) it sounds great

With EQ enabled, the tone adjustments are obvious, but in general; specific instruments are less discernable, sounds are 'muddied' or 'blended' in a way.

Is this technically valid ?
Is there a word for this ?

I'm familiar with the Fourier transform. In particular the way the phase and frequency information are separated, then recombined after the frequency amplitudes has been adjusted.

Surely this can't be ideal. It's not the way frequency and phase interact and attenuate in reality..
 
IMO, software EQ is not bad if it is well implemented and if you know how to use it.
There are plenty of well made EQ's (I prefer plug-ins (VST)) out there and same with the instructions of how to use these (google is your friend here).
 
Example ...

Not bad , but SO fun.
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see the music ...

I can see the music on my 50" as well as doing any thing to it's content.
This is why I had to get better audio hardware. Mix 20th century audio
with 21st century DSP/visuals. Intoxicating.

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The spectrogram display in Foobar2000 makes for great visuals, although lacking in colour.

My suspicion is that EQ and tone controls are band-aid fixes for inadequate speakers. Once I had decent speakers and a sub in my car, I had no need for the tone controls, EQ, or loudness button. It sounded good with anything at any volume. Same with my home setup; I couldn't even say for sure if the AVR had tone controls.