Duke,
The source "appearing" outside the speakers is "encoded" in the music with either mixing methods or microphone techniques, but and it is a big but, how that appears on playback is highly dependent on speaker, listening position, microphone or mixing technique and very important the listener themselves. The microphone technique or mixing (playing with timing) can have more impact on perceived playback that anything to do with the venue.
Keep in mind that how this works is not by recreation of a real source outside the speaker as would be the case with a first reflection, but by tricking the brain with a delayed signal from the other speaker hitting the opposite ear to generate timing information that the brain may perceive as equivalent to the timing information of a sound wrapping around the head to determine direction. Not everyone interprets it the same and the effect can be positive or negative and is influenced it appears by individual interpretation of timing and volume cues for direction, not to mention what works for one recording on one system could fall apart completely with a different recording or system.
For those discussing "height", we have a hard enough time getting height in a real 3d environment. Nothing that comes out of your speakers (in a single plane) is height beyond that your room acoustics may generate and it would bear little reality to the actual recording environment (if it had any height at all in the first place).
The source "appearing" outside the speakers is "encoded" in the music with either mixing methods or microphone techniques, but and it is a big but, how that appears on playback is highly dependent on speaker, listening position, microphone or mixing technique and very important the listener themselves. The microphone technique or mixing (playing with timing) can have more impact on perceived playback that anything to do with the venue.
Keep in mind that how this works is not by recreation of a real source outside the speaker as would be the case with a first reflection, but by tricking the brain with a delayed signal from the other speaker hitting the opposite ear to generate timing information that the brain may perceive as equivalent to the timing information of a sound wrapping around the head to determine direction. Not everyone interprets it the same and the effect can be positive or negative and is influenced it appears by individual interpretation of timing and volume cues for direction, not to mention what works for one recording on one system could fall apart completely with a different recording or system.
For those discussing "height", we have a hard enough time getting height in a real 3d environment. Nothing that comes out of your speakers (in a single plane) is height beyond that your room acoustics may generate and it would bear little reality to the actual recording environment (if it had any height at all in the first place).