Another real world example is my main band LORD. If you ever listen to us (link in the signature below), the first thing you'll hear is a LOT of layers, like literally hundreds of vocal layers, up to 25 guitar tracks, synths, loops, sometimes 2 different bass tracks, and usually very fast and busy parts, especially drumming wise where the kicks can be very full on.
Mixing that is a HUGE challenge, let me tell you! But where possible, yes - the arrangement favours the most prominent element. Is the guitar riff the key? If so, does it REALLY need the kick drums to follow every note? Can the bass do something in a different octave? Hang on a note? Stop entirely?
And yes, sometimes it's absolutely necessary to be that busy. You'll have a very proggy tech riff where everything is playing - the guitars and bass are mirrored over the top of a double kick section, with orchestration and vocal adlibs - and that's
crucial to getting the intent of that part across. It's in those places that you really need to put your objective engineer hat on and decide what needs to take focus most of all, and put any ego aside (and as the lead vocalist and guitarist that also does the keyboards, that's a hard ask for me! HAHA!)
But yeah, some great suggestions in this thread and things I've pulled out pretty often when I manage to write myself into a tangled mess!
One last thing to consider is your ears lie.
I think I mentioned in anther thread somewhere that I made a complete disaster area of our first proper album back in the 90s. I listened to each track in isolation, and got everything sounding absolutely MASSIVE for each track on its own, and then naively sat there like a drooling idiot wondering why it all sounded like a muddy mess once everything was all combined in the mix, and then every change I made after that was just more tangling. I'd turn up the guitars and you'd lose the kicks. I'd turn up the kicks and then the bass was getting lost. I'd turn up the bass and then the guitars sounded wimpy. So I'd turn up the guitars and... repeat from step one, watching the other band members getting more and more angry I'm wasting our recording budget.
That's just half of it. The other half is your ears really get attuned to what you're listening to, and it's a very distorted view of reality. This same album is a good example. We finally got something we all could live with (barely) and took it to get mastered. We put it next to the reference tracks and everything else we listened to sounded wrong and kind of thin and midrangey. In actual fact, everything else was fine (of course it was, since it was all done by pros with a huge budget), and it was
our stuff with no mids and a sloppy low end. But none of us could hear it objectively anymore.
You really need constant reality checks with commercial mixes as you go to keep your brain in check. Changing anything, even for the better, will sound wrong if you're caught up in your own mix. So cutting the lows on the guitars to carve space will make them sound bad if you're used to that mud being there, but if you compared it to a commercial mix, you'd probably find that's exactly what they did to get that to sound so good.
Anyway, just a couple more things to consider.