This will make room in the frequency range for the Sound #1 to stand out better again. Now, instead of boosting those sweet frequencies of Sound #1, you CUT the overlapping frequencies from Sound #2. Sound #1 sounds sweet and you want to preserve its sweetness throughout the mix, but Sound #2 has frequencies that overlaps badly with it making that sweetness to become more indistinct. Lets take an example: you have a Sound #1 & Sound #2 in your mix. Its an opposite to additive EQ (boosting). Subtractive EQ is an equalization technique where you cut frequencies instead of boost to let specific sound or sounds to stand out better in the mix.
I have used this technique to some extent yeah, but only recently I have been paying a more close attention to it and I must say this has been a kind of eye opener to me. For a while now I’ve been practicing with subtractive EQ while mixing my own music and I wish I had looked into it more earlier.