Increased polyphony can indirectly improve sound quality by allowing such capabilities as stereo sampling (which doubles the amount of polyphony required) and voice layering. Even lower-end keyboards have instruments that use up two or more voices of polyphony. These techniques can result in more complex and realistic sounding instruments. (The ultimate pipe organ simulation would require over a thousand voices of polyphony, for example.) Increased polyphony also permits richer, denser arrangements.
David Altekruse
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-David