Bryoncunningham,
You stated, "Unfortunately, even if you win this round, he will pivot to another topic. You have stumbled onto Geoffs infinite staircase." Of course, you are absolutely correct. Which is why am staying in the wings at the moment. If he comes round with a new version of his same-old it will be evident and no comments will be necessary to state the obvious.
You have made some very interesting observations in your post.
You stated, "a two channel playback system presents whatever ambient cues the recording contains primarily from two directions the direction of the two speakers. But the ambient cues in the recording space were presented from all directions." This is a very interesting point. I believe it is a bit more complex than this. We have only two ears but, with the help of the brain, we perceive 3-dimensional sound. The same with having two eyes but they enable us to see in 3 dimensions.
Stereo recordings pick up sound from all directions. Good audio systems are able to reproduce the ambient cues in stereo recordings 3-dimensionally. Presenting the sound from two directions, two speakers, is limiting to an extent, of course, especially when the equipment is not at a level that can reproduce 3-D sound in an effective way. In this sense it is not the 2 speakers that are limiting but the quality of the system itself.
You stated, "what is heard at the listening position isnt a fully accurate representation of the recording space." That's true. It cannot be because our listening rooms are not studios or concert halls. The listening venue is a facsimile of the recording venue. The extent to which it is able to recreate that venue in a 3-D way depends on the quality of the system.
You stated, "In other words, a space in which the *apparent* size, shape, and materials of the room change from recording to recording." This is precisely what astonishes me about my own system. It can sound so different from recording to recording.
You stated, "IMO, holographic sound is more about the realistic presentation of INSTRUMENTS AND PERFORMERS than it is about the realistic presentation of THE RECORDING SPACE ITSELF." I agree -- almost completely. Although my system gives an excellent feeling for the ambience of a church or other special venue where a recording has been made, it is the presentation of instruments and performers in a very life-like 3-D panorama that distinguishes its sound. It is the sense of realism of instruments and performers, as you point out, that is important here.
You stated, "But when the ambient cues of the recording space are lost, what goes with it is the illusion that "You are There."" Exactly. The more refined the system, the more it is able to pick up and reproduce ambient cues and the greater the resultant sense of "being there".