How far are we from getting a general model that can resynthesize any instrumental audio sound without fiddling with any knobs, so that we can recreate instruments we hear from any song? Seems like it should exist by now?
For me creating the exact sound is not very interesting from sound designing perspective. You can always sample the real instrument.
Like physical modeling synthesis, the interesting part is to compress the sound to some parameters that you can tweak and generate new sounds
Another approach is VAE, which also you give your some latent embedding, you can tweak the embedding to generate new sound. However the meaning of this embedding is not explicit.
SUNO is pretty close. It still has some weird things going on with high frequency artifacts and phase between left and right channels but if you aren't listening on a good system (like a phone) most people probably wont notice.
Fiddling with the knobs is the fun part. https://www.youtube.com/watch?v=la2u4VlGwbQ