You are asking that if you limit spatial/3D audio to just a horizontal layer, can a stereo mix compete?
The answer is yes. You mainly just have to play with the loudness/phase/delay between L/R and you can introduce the illusion of spatial properties. [Check out these test sounds](https://www.audiocheck.net/audiotests_stereophonicsound.php).
The issue though is you have to create these loudness/phase/delay differences for a stereo mix, whereas for say a Dolby Atmos process you just place the sound you want in 3D space around the virtual listener and it does all these adjustments for you.
There is another aspect relating to HRTFs (how our physical heads alter sound as it passing around our skulls and pinnas), I do not know if Dolby Atmos music tracks take this into account, [I do know Sony does for the PS5’s spatial audio](https://youtu.be/ph8LyNIT9sg?t=2400), so I assume Dolby does as well (not personalized of course, but a general model).
**EDIT:**: Dolby Atmos does use an HRTF model for headphone tracks, they even have [an app for personalized HRTFs to make it even more realistic](https://www.soundonsound.com/news/dolby-announce-personalised-hrtf-app?amp) ([Apple’s AirPods also do this](https://support.apple.com/en-us/HT213318)).
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