Of course it does, if you want it to. Crystalizer can be turned off, EQ can be bypassed, in audio creation mode it doesn't even do any resampling, it can output at 44 KHz if you want it to. If you're saying there's better quality soundcards available, then yes there is, I never said there wasn't (although they're not suitable for gaming). I didn't even say whether X-Fi was a good card or not, or anything about what uses it's suited for.
I just said that any extra quality it has over lesser cards can be better apprecaited with a high quality amp and speakers. There's nothing mystical about hi-fi gear, it's just better quality, better designs, better parts, better materials, made by companies with far more experience of making the best quality audio equipement. Hence most of it sounds better.
Your point is that all the processing the X-Fi does can help make up for crap speakers, which is probably true, but that's no excuse to have crap speakers. For the £80 you pay for an X-Fi you might get 3-5% better sound versus an Audigy 2 maybe. If that money was spent on better speakers instead, you would see far more for your money (I'm not talking about your speakers here, but general PC buyers who buy X-Fi and use it with X-530 as above).
You seem to be forever critizing hi-fi gear since you upgraded to an X-Fi, as if you were expecting it to do something wonderful. It doesn't have the best analogue output of any soundcard. There could be a million other reason why you didn't get the sound you were looking for, for instance, your amp could be crap or knackered, you could be using those floorstanders of yours in a small bedroom, which they are not suited to.