A mere two speakers has inherent issues and limitations. But so far, to my ears, it’s hard to get multi-channel to sound as good on music. I’ve tried up-mixing 2 channel recordings to a 3 channel with derived center using various methods because I always hear a tonal issue with the phantom center caused by interaural crosstalk. But my best efforts have introduced issues of their own. I can improve the center with more speakers, but only at the expense of the rest of the sound field. Or, the center no longer seems to fit in with the rest of the sound field quite naturally enough. Better to just use two speakers and experiment with the speaker placement and room treatments to optimize the results to your preference. Optimal gear matters too. I’m not sure about digital doing something bad that analog gets right, but I’ll take Mike’s word for that because he has an optimized analog system and I don’t.
For video games, surround sound is awesome! I can definitely hear with greater precision which direction things are coming from in the game with more speakers. For movies it can work too, but I’m not into that. The screen is only in front of me and I don’t have control of the camera like I do in a video game, so I prefer to have the sounds stay in the front too. A center channel can be good for vocals in movies, but that mostly matters for people sitting off center. My guests all couldn’t care less. As long as they can hear the words they’re good.
My nephew is one exception. He seems to notice the imaging and pay attention to the sound field. He tells me the "surround sound" is amazing, even though it's just 2 channel stereo.