Hi Leadfingers - I wouldn't say it necessarily sounds better, just different. I think Bee was saying she likes the sound of the guitar when it's capo'd - I know what she means. There's less bass but you do get a pleasant sound using the capo.

Bee, I too used to wonder whether it was a good idea to capo too far up the neck, but since then I noticed a lot of top-class artists doing it, so I figured, if it's good enough for them, it's good enough for me. I've seen many artists capo on the 5th fret, and some even higher occasionally.

I agree that you can avoid using a capo by playing different chords, but you don't always get the 'right' sound by doing that. For instance, there's more than one song I play in A, by using the capo on the 2nd fret and playing G, because it allows me to use certain chords I couldn't easily do if playing without the capo.

I often find I can't sing in the same key as the writer (or as the music is sung on a recording, etc.) because the range of my voice is different, so I don't hesitate to use the capo if I need to.

The only limitation is what you can comfortably play - too high up, and the chords get more difficult to play. Also, of course, you lose out on the bass notes too. IMO there's nothing wrong about using the capo - it's just what sounds best to you.