@oddioboy , welcome to the forum. I think you articulated what I was thinking much better than I could:
"So the question is, can making an active speaker give control over system variables such that you can improve one of those 3 things in ways no separates ever could? The answer is yes. A rather resounding yes."
This is not to say passives are a resounding no, just a different approach with a different set of tradeoffs. My system started with a pair of Active 40’s which are internally biamped. Then it went to 5.1, 7.1 and then when I added wide channels for 9.1. Then when Atmos came along I figured out how to get 4 more active speakers mounted on tall stands. I never had to buy more amps, buy more racks, buy more speaker wire. I did have to buy additional power conditioners for all the outlets needed but active speakers let me grow my system just easy as buying a new speaker and it was very space and cost effective.
Now you take the benefits of active and put them in a stereo system and you are grooving. When you take 7.2.4 (or more) and put them in an atmos system it is radical. The entire room comes alive watching a movie like Dune or a ZZ Top concert. @brianlucey made a very astute observation when he said good atmos needs cohesion. A good active speaker has cohesion designed into it with the amps, drivers, crossovers and cabinet designed as one cohesive system, Multiply that same cohesion across 11+ active speakers in a carefully treated and calibrated room and it sounds incredible to my ears.
If you have time would you post your virtual system and maybe a few pics?