I would say from my experience with loudspeakers that they do get better and better all the time. Thank god that this is the case, because otherwise we are going backwards. So, yes, state-of-the-art does mean the latest in engineering, at least in the field that I know best.
state of the art
DEFINITION
the most recent stage in the development of a product, incorporating the newest ideas and the most up-to-date features.
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