I frequently read that sound had been figured out by close to the time recording and amplification started. This is like the third piece of the scheme, after triode amplification and the electric microphone.
http://www.bbc.com/news/uk-27483035
Lest we grow prideful of our era's importance, digital audio theory was nearly complete by Nyquist's work (Published 1924 and 1928, final proof by Shannon in 1949. This genius at Bell Labs also worked out amplifier feedback by 1932, and much more. For instance, his Fluctuation-dissipation theory I use every time I listen to my First Watt amps. Their transistors are thermally stable and constant in temperature by passive means, shown to be possible and practical in a 1928 paper.). And for those of us who experienced first rate mono systems in the 1950s, even stereo and multichannel seem minor improvements, if even that. I am an enthusiastic user of JFETs, MOSFETs, iPods and speakers smaller than giant horns, but I can see them for what they are. Coveniences, sometimes refinements, but not seminal great leaps forward. Our debt to these pioneers is staggering. It can be ego shattering to realize that our stuff is sometimes no better sounding than the best 1920s efforts.
As for what is being developed now, I am in awe of the work done by Jerry Moro at JBL re: reducing distortion in dynamic tranducers. Like the Denman Horn, unfortunately out of my modest financial reach. Stax I have figured out a way to play with, and my hat is off to them also.