That's the same thing every time I have attended the Chicago SO in Symphony Hall, from every different location on the main floor or first balcony. The percussion section in particular shifts almost entirely across the stage in some seats when one closes the eyes. From many seats, closing my eyes resulted in sort of a wide mono sound with very little precise location.
I have found "imaging" - that is identifiable locations of instruments - happens quite readily when I close my eyes at the symphony or practically any other unamplified performance. Admittedly I like to sit closer than many when I can, but it's still there (even if less pin-point) at greater distances when I close my eyes.
A problem is of course debating what would count as "precise" imaging, given we would be inherently exchanging totally subjective impressions.
Thus stereo imaging in a reproduction system, as far as I am concerned, simply provides a believable illusion of a real space without it being a direct representation of a real space.
I think I'd agree there. In many cases the use of multi-micing is actually in service of being able to restore a sonic balance, or create a sonic picture, that mimics what we hear at the live event. (This is because microphones don't "hear" sound as we do, and so have to be manipulated and mixed to better represent what we hear).
Another thing to consider for the "Live Music Doesn't Image Like That!" folks is this: When we attend live music we are almost inevitably watching the performance.
We know that our senses work together; that what we see can influence what or how we hear something. There are obviously countless examples, but the typical TV sound is one. The sound is simply coming from speakers "somewhere around" the image, but watching the image it seems to be mapped right on to the mouths of the actors. An extreme version of this is drive-in movies. The location difference between where the sound is occurring - a speaker beside your car, or your car's stereo system - and the far away image is huge. And yet our brain tends to map the sound to the image "it's coming from way over there, right from that actor's mouth!"
Similarly, if we are attending a jazz or orchestral (or whatever) concert, our brains are mapping the sound to the various musicians on stage. The combination of sight and sound makes for "precise imaging" in this respect.
One could say that precision in stereo imaging, while artificial in of itself, nonetheless does re-create an aspect of attending real life music performances - it's giving us something like the precision of location we'd have when attending the real thing.