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I'm not an audio engineer, so I'm sure there are a lot of practical issues I'm not up on.
The issue is whether there was data on the original recordings that somehow didn't make it into the masters and the public releases. In some cases there are actual errors in the original master that might become more apparent with better technology and might need to be fixed. But that's a case-by-case thing.
More commonly, remastering has been necessary when there's been a major change in the consumer format. Like when consumers first transitioned from vinyl to CD the existing masters had been produced for the vinyl format, which is not as good with high frequencies and is more forgiving on the noise floor. So a lot of the early CD releases were not as good as the technology allowed. So a few years into the CD era there was a wave of remasters and I think those were largely justified. On the other hand, late in the CD era there was another round of "remasters" that were really just repackaging with better liner notes, etc.
In the modern era, it's all more complicated. In principle FLAC or other lossless formats produce audio that's identical to CD, so masters made for CD ought to be perfectly good for FLAC. Lossy formats really do differ audibly, so in principle there could be a value in remastering specifically for some given lossy format. But I've never heard of anyone trying to do that. Usually we think of remastering when we're transitioning to higher-fidelity formats. The perverse thing about the last 20 years is that we slowly transitioned to lower-fidelity formats and now we have enough bandwidth to transition back up to CD-quality.
At any rate, while again I'm not really an expert on the finer details I mostly think of the modern value of remastering being about fixing errors in the original master, which did happen quite a lot but the case-by-case fixes have been happening for a long time already.
All that said, there could be some revolutionary technologies coming up that might use machine-learning algorithms to do things that were impossible with older technologies, things like lowering the noise floor and fixing other defects that were present even in the original recordings. Pristine audio of early Louis Armstrong, Robert Johnson, that sort of thing. I'd say that's about a decade away from large-scale mainstream use, and when it comes it might be very controversial, but it might give remastering a whole new meaning.
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