Hi Kurt and Steve
I agree in your observations - 'pure' does not really exist, but I'm glad you get the impression of the guitar being present.
I don't remember the set up for 'The beautiful mountains of Spain' but it's the same mics and a little less distance plus added reverb (Waves IR1).
It may leave the impression of the guitar being played in a larger room - or maybe just the impression of added digital reverb
I'm in a dilemma too about reverb, as I really love the sound of a 'pure' and present guitar, but my recording room is only about 10 m2 which may seem a bit dull.
Anyway, some things may happen during play back in your living room, and my idea is, that we may be able to make 'pure' recordings that will come alive in peoples rooms as if the guitarist was actually sitting there - not as if they were played in a cathrdral somewhere else.
Just an idea