If all early reflections are well dampened it is physically impossible for sound to come from beyond the speaker without studio tricksThat’s quite a bold statement... what’s it based upon?.. happy to be educated if there’s some definitive research out there.
The studio tricks are just an exaggeration of an effect that exists in nature which is that if a source of noise is closer to one ear than the other then our brain is able to detect the phase difference to help identify the point in space from where the sound came. If these differences are recorded to the left and right channels they can be reproduced by the loudspeakers. From your listening position each ear can hear a bit of each channel so I agree you can’t expect a 360˚ holographic stereo image. But I also don’t see why the stereo image should be bounded between the speakers - if our brains only used relative amplitude to locate the sources of sounds then it would make sense, but it’s not that simple.