Hello
Any acoustic instrument will sound better, when the microphone is further away. With guitar - the whole top is vibrating, the sound hole is a bit like the air vent in bass cabinet - and also the neck vibrates some. Premium reason for the common close mikin´is more volume before feedback - at the expence of sound quality - unfortunately no eq or other processing can bring back what was lost in "false" microphone positioning.
As FOH-engineer I catch drums with only three mikes - one for BD - one waaay under snare - one behind floor tom. Sounds like drum set. For special effects and unnatural power drums you need cazillion close/veryclose mikes .
That microphone seems to be AKG 414 - a very high-quality studio condenser - also quite suitable for live pa.