Some engineers set the groups up as they would normally appear on stage in a live performance, then miked from an appropriate distance that would approximate a good audience seating position in hopes of recreating the soundstage.
It could be done both ways, but there are plenty of convincing recordings out there besides Van Gelder's (don't get me wrong - he was the best).
I remember listening to Coltrane on "So What?" (recording engineer Fred Plaut) imaged about 8 feet in front of me, near dead center, on a friend's tube-driven Magneplanars. Similarly, there are plenty of live recordings out there with remarkable placements of the players to the left, center and right.
Part of the issue is often the imaging quality of one's home set-up and where the sweet spot is.