As mentioned in the other comment, it hides the real problems.

It also does remove lo-fi sound we don't hear as pitches, or tones. We do feel those and experience them as volume changes at volumes and on equipment good enough to deliver them to us.

If you are ever in a place with great gear, where it can be loud enough to matter, apply that filter and a - b test. You may find some experiences filtered out.

In the very vast majority of use cases, nothing meaningful is lost, save for watching good amps move speaker cones in and out...

The filter isn't the problem, it's just hiding the real problem: the song has been mixed so loud that it "clips" at recording medium's max volume. That means you've lost a lot of waveform information on the loud sounds and it comes out very flat-sounding.