Diffraction explains why speaker cabinet edges cause distortion — sound waves bend around the cabinet edge, creating secondary sources that interfere with the direct sound. This is called 'baffle diffraction' and is why many high-end speakers have rounded cabinet edges or waveguide-loaded tweeters.
Diffraction also affects room acoustics: sound bends around furniture, people, and architectural features. Low frequencies diffract more than high frequencies (their longer wavelengths wrap around objects), which is why bass is omnidirectional while treble is directional.