Your idea of using multi speakers and Atmos… well, it is one of those things that sounds great on paper but isn’t remotely close to working in the real world.
Santana, Adele, Aerosmith and many others are ALL incorporating Atmos in the "real world" of their shows:
https://www.mixonline.com/live-sound/venues/on-the-cover-las-vegas-takes-immersive-live-part-1
High quality sound requires top quality components.
I can get Marantz, JBL, or Anthem SOA processors for less than $8K, can you say that about a SOA two channel preamp? High quality doesn’t have to be exorbitant.
So scale up a really high quality system to have 7 or 12 or more speakers / amps and you just increased you system cost by ten times.
This is debatable, I don’t think we could reach a conclusive answer.
I have a home theater system with a flagship surround processor, B&W 805 speakers and two B&W 800 subwoofers. It sounds great… but not remotely in the same league as my audio system.
Fair enough, I have a two channel audio system with a flagship (or Signature as Sony calls it) two channel preamp with a pair of Paradigm Studio Reference Active 40 speakers, all drivers custom built in Paradigm’s factory biamped internally by class A/B Anthem amps hand selected by the designer with a matched active crossover. It sounds great (and measures great, see my profile)...but not remotely in the same league as my 9.3.8 home theater.