Does Separates really sound better than Integrated

The different types matter less than the quality of each build.
So easy for one or the other to be 'better' because of parts used and circuit design.
IMO no such answer to your question can be made due to these factors.
Plenty of great integrateds, plenty more great separates..
Plus the price range..
Clearly in the top tier 'price no object' the separates rule.

Yes, integrated set ups can sound just as good as separates. I have separates (monoblocs), and I bi-amp, mostly because I like the flexibility and the endless tweaking that separates allow for. What's more, the monoblocs, pre-amp, and cd-player are tubed, which allows for even more variation among components. I enjoy messing with stuff, and separates allow for that. I have an integrated that simplifies the whole thing, and it sounds great, but it leaves me with nothing to do. Boring, at least for me.

They really do.