Sure, you definitely thought it trough. Binaural recording work the way it does because of that yes. But in the end sperakers are still point source, I think, so everything in the end, is about tricking the brain, but it don't mean the perception is not real, whether you use some HRTF algorithm, frequency manipulations, a binaural head or a purposeful choice of microphone positioning arranged in a way that the recordist pick up spectral cues designed to give you this perception, if it works, it works. It does not mean that: At recording, we had one figure 8 mic and this trumpet was on a stand, so he will sound higher. It may just not be the right experience, nor the way to create this 3rd dimension.That is indeed a very interesting point! We are capturing instruments and voices that themselves have very complex radiation patterns, and using microphones and speakers that, by their design, MUST have a predefined and predictable radiation pattern with respect to recording and playback of sounds. Otherwise, they wont work the way we want them to. I think the opposite is likely true with respect to imaging. Imposing such constraints likely alters much of the spatial cues, which is probably one reason its so hard to get a good sounding recording with only two microphones. They only capture a small slice of the emitted spectrum, and any additional cues that we normally use to interpolate, such as small head motions and the interactions with our relatively large ears, are lost in the process. These cues are both the changes in spectrum induced by our ears with respect to relative position (that microphones wont include) as well as changes in tonality as we move about. Its one reason why head tracking is needed with headphones if you want full binaural audio. Its my experience that everything images just behind the head, and along the axis of the ears, otherwise in binaural recordings. Those subtle cues are missing.
In the end the audio mixing engineers, work with the whole system together the speakers, the microphones, the room, the DSP. They may not use complex calculation, but they hear the changes they do. They work with iterative methods.
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