1) If your goal is to document, stereo is inferior, on this we agree.
2) If your goal is to create, I STILL think stereo is inferior. Think about it: What is the benefit to "creating" a fake frontal-only sound field? There really isn't any. The goal of music created this way is still to create a "documented" experience, it's just being faked by the producer. The core belief that stereo is sufficient for this is typically that music is coming from in front of you, so that's all you need.
But this is an entirely artificial restriction, and real multi-channel music completely ignores the whole idea that music should be a frontal presentation AT ALL. For example, the famous quadrophonic recording of Pink Floyd's Dark Side of the Moon uses different sounds, including vocals as well as instrumental and non-instrumental sound mixed to all 4 channels at different points of the songs.
That experience is not even remotely frontal, and to me it's far more interesting than the vast majority of stereo recordings out there.
As I said above, # of channels is just a tool in the artist's palette. If you're documenting, being able to represent the reflections better is a benefit. If you're presenting, being able to put the listener in the middle of an experience that comes from all directions is a far more immersive and intense experience than a frontal one.
The biggest barrier is cost, but I don't agree that multi-channel will never catch on. There are hundreds if not thousands of multi-channel classical recordings out there, and people are consistently trying new things with it, up until today where there are a number of artists recording music for Atmos.
Even some very famous ones are experimenting with it.
I think if the attempts at processing headphone audio to satisfying sound like surround speakers work out, the future may well be entirely object-based, multi-channel music. But who knows. Either way, it's definitely an interesting and useful tool for artists who want to create an experience for the listener.