I totally agree with what you've said except about KPA users not wanting improvements. Would I want the KPA to sound better?
I mentioned people not minding/caring about possible improvements to profiling itself. So I don't necessarily disagree that a law of diminishing returns applies, for many. It surely does, yea.
But in so far as technical limitations, I don't know if what CK meant at the trade show is that he recognizes some area for improvement, but that there's such limits (not considering profiling multiple stages)... or whether he seems some minor possibilities, without this being a road worth treading on, like some improvement on kempers' EQ matching tech.
We could surely go into more detail about profiling. But that's been done a gazzillion times in the past. There's quite specific areas people have pointed to, with tests and considerable detail.
That aside, on the modelling topic, I think there's many areas where fractal models have sought more accuracy. Modelling is meant to accurately replicate mostly the analog world, right? That's a big part of their focus. I've had amps where the respective amp sims get closer in terms of tweaking in digital vs analog world. It's some times hard to test, considering fractal uses their own amps, but I've seen notable cases of this nonetheless.
A problem for me -- when it comes to replicating a source tone -- has been that EQ is a weird animal, amp tolerances are a real thing, potentiometers are voodoometers, oftentimes in their variance... And ax8, FM3 have no automated way to bridge that gap akin to profiling. (Well, shooting IRs can go a long way, but EQ matching has several advantages, imo, and profiling does considerably more too).
Money not being an issue, as well as portability, I'd myself go for axe FX 3 over FM 3 largely due to the EQ matching option. It's just that FM 3 modelling (haven't used an FM3, but axe FX 2-3, ax8 yes) is probably good enough to where shooting IRs is usually sufficient for me.
Still hard to let go of Kemper though... so I don't think that's going to happen, even if I've gone through quite a gear unloading phase, from gazzillion guitars to Amps, mostly keeping gear that's proven essential to me.