Its tough to listen to a different mix when we've been enjoying the original for over 25 years. This video [1] compares them, but I'm with you with it sounding off. In Heart Shaped Box, the effect around 2m53s[2] is too jarring compared to the final mix we got.
I might be wrong, but I've always felt like Albini's aim to sound like you're in the room with the band, where the drums boom and the vocals are quieter.
I think that stands out from his letter as well. Albini sounds really into the live experience of music, and wants to replicate that as faithfully as possible.
As a total aside: Albini's attitude and writing is a breath of fresh air in today's world polluted by corporate backstabbery and doublespeak. Albini is a professional. He says what he thinks, wants do his work and make his money, and doesn't try and lay claim to the entire future legacy of the band because he's good at slinging electrons around a board.
Been a while since I've done anything related to audio engineering so my terminology might not be correct, but I've always heard this described as presence. Stems from old guitar amps that had presence knobs that would dump highs to ground to give a darker, slightly muffled sound.
Like you said, it's the difference between it sounding like you're in a small room with a band or in a large venue where some of the clarity is lost.
I agree with this, but I like the Albini version. My first listen to this track (in a long time since hearing the other version) the vocal is centered with good imaging, and is much less boomy than the original CD version.
Very much like it's a person in a room, instead of processed.
It is far less "in your face", and arguably, teenagers then might not have thought it cool. Like a band from the 70's or 80's.
Will have to listen through good headphones tomorrow. My initial impression is also that I like Albini's version more, but I understand why the song became famous from the final mix.
Albini's does lack that separation that differentiated the remixed songs from contemporary and then recent punk and "always-on" grudge imho.
I listened to Smells Like Teen Spirit at a listening station at the Rock and Roll Hall of Fame 20 years ago and the in-your-faceness blew me away. It was like hearing it for the first time again. I get why that record changed the game.
I might be wrong, but I've always felt like Albini's aim to sound like you're in the room with the band, where the drums boom and the vocals are quieter.
[1] https://youtu.be/W6Gp8up3l8Y [2] https://youtu.be/F9pwGlgQz2E?t=173