"So, it is just location and separation, not depth/realism?"
Sure it's depth and realism and dimensionality too. Sometimes you hear systems with great spacing between the performers laterally and back and forth, with quiet spaces between the instruments but the images just sound flat. I think it was HP who used to say "painted images on a painted sea." You want those images to have body and dimensionality as well. When you are sitting in your chair, you want to not only be able to point to that saxophone, but you want to be able to feel like you could get up and walk around it because it's so dimensional sounding. It's all part of imaging.
Sure it's depth and realism and dimensionality too. Sometimes you hear systems with great spacing between the performers laterally and back and forth, with quiet spaces between the instruments but the images just sound flat. I think it was HP who used to say "painted images on a painted sea." You want those images to have body and dimensionality as well. When you are sitting in your chair, you want to not only be able to point to that saxophone, but you want to be able to feel like you could get up and walk around it because it's so dimensional sounding. It's all part of imaging.