You're probably correct in an automotive setting, but in the high-end audio world, the proper stereo setup, with very good speakers, amplification, and front end (digital or analog) provides a far more realistic (imho) soundstage - with the right recording - in stereo. With the right setup, in the right room, your ears hear an expansive soundstage - instruments & voices come out of a wide, deep area that doesn't identify where the drivers (speakers) are. And I think it would be difficult to find any classical, or closely miked jazz, recorded in "surround sound" - it's recorded, generally, in stereo. Listen to a pair of Martin-Logans - close your eyes, and the speakers completely disappear into space. You can't identify an individual speaker - the two of them create a soundfield that is amazing... sounds come from seemingly far behind the speakers, in front of, and to the right and left of the speakers, with a thoroughly filled in front & center. And just to make this as flameworthy as possible, Bose ain't high end - it's just very good marketing. JBL isn't either...they are great high power concert systems, but certainly not remotely close to high end in the home or home theater realm. DSP creates additional information - channels - that aren't in the original recording (unless it is a rare recording done in multiple channels). Look at the Lexus Mark Levinson systems - and then look at Levinson's ultrapremium home systems. Any processing there is done to compensate for the acoustics of the automotive environment.
I guess, in essence, this is all completely and totally up to the individual listener and their subjective tastes - I just like the JBL system in standard stereo.
