Balanced [to me] means that the treble and bass response are both equal in amplitude and one does not over power the other. A quick test that I do is to pluck both strings at the same time and listen to them to see if they are both the same amplitude. Stiffer built guitars will often have a more powerful treble response while looser guitars will often have a more robust bass.
Kent made some very good responses so I will not bother repeating them but rather add a +1 to his comments.
I think words like "rich", "full", "grandiose" and "sweet" should be added to the subjective list as well.
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