So far, pretty much everyone has said/written that a more dead room is better for recording. It's just cleaner that way in the recordings. However, my new arrangement is in no way "dead". It's still very lively and even when all the material is in, and it supposedly sounds like what the engineers had in mind, it won't be completely dead sounding.
A completely dead sounding room (that's another way to go in other situations) has no ambiance at all ....... You'd have to put some back in electronically (like reverb) or it would sound bad. Also a dead room is not good for practicing at all, there's a compromise somewhere (recording studio standards) where it's perfect. Sounds great, easy to hear yourself and others.
I know what you mean about vaulted ceilings and good sound. My buddy Jonathan has a house he built himself that has a cathedral type ceiling that goes up to a round peak where there's a skylight. That, plus the room being a truly weird shape gives the place a great sound. That would be a good place to record, I assume. But, the good small room that sounds right is reliable, everything sounds the same (ambiance) and will mix easily.
So far, I only have a guitar based recording from the old bad sounding arrangement. It's on SoundCloud, called "Blue Turtle". It sounds sort of clean, but if you could hear the Master on my machine through the studio headphones, you would hear all that "noise" that muddies it up.