For sections that is true, but I think producers would be better combining many solo instruments.
"I think if you had mono, bone dry samples of such instruments, they'd sound very unrealistic when artificially panned and artificial reverb applied."
Depends what you mean by artificial reverb. Top notch carefully selected convolution reverb taken from measured vectors should sound convincing enough.
"Then you can come back here and complain about the length of time it takes a library to load/save, the insanity of having to buy even more storage to hold it (and/or that it actually ships on a drive"
Well, I haven't complained because I have an i7 x64 bitch. Also, I only believe in dealing with an instrument at a time and combining them. I'd rather have detailed single instruments and put the effort in.
"... or 50 DVDs to install) and, of course, you'd complain about the price which would have to increase substantially to meet your somewhat hypothetical specs."
No because VSL was just given as an example of reverb, I actually only require detailed, dry solo instruments, which I combine to small ensembles.
"And "dry as a bone"? The majority of the market would then complain about how 'dead' and artificial they sound".
But there are some instruments recorded as dry, and they don't sound more lifeless. How does reverb on individual samples bring them to life anyway? Reverb applied overall maybe.