Some see scratchy, poorly transferred and adjusted, old music as a mark of 'authenticity', or 'true tango'. I recollect some group we once attended listening to scratchy, pop and click infested, 78s, or worse. It needn't be like that. It can be 'tickled' to remove those distortions, but it's a lot of work. Occasionally (rarely?) there's a good tango hidden there, but sometimes best forgotten for a reason. If it was good, someone may have recovered a good recording. It needs a musician as well as technical expertise.May be - even if there is a school of thought that suggests distorted sound eventually has a negative "psychoacoustic" effect on the general mood.
However, I don't listen to tangos only "while dancing" (and DJing, as I suppse many DJs do). And if I find myself wondering - say, while driving - whether the sound really has to be that poor, then the dancers are surely wondering the same thing, at least at the beginning of a dance. Besides, one can always play something else out; there is usually no shortage of options.
Sadly contemporary recordings can't offer the orchestration, just a small group. We really need more contemporary tango music for dancing from modern groups and composers (but some will be forgettable!)