My 2 cents...
I’ve been comparing Dolby Atmos and stereo in a professionaly engineered and treated room with optimized speaker placement for both formats (L&R mains can be quickly repositioned), and my experience runs a bit counter to the atmos hype for music.
For music, stereo just feels more enveloping and satisfying—not because it sound surrounds you, but because it convincingly fills the room. Atmos can put sounds all around me, but stereo feels like I'm immersed and sitting in the music... like the volume of the room is completely filled. Instruments and vocals also have a stronger, more convincing presence and a cohesive presentation.
Atmos, in comparison, often sounds softer and less present. In my room, it occupies little perceived space or volume in the room. That may be a tradeoff of spreading energy across many speakers, though I’m not sure that fully explains it.
Side note, until I experienced a purpose built and professionally treated 2-channel room, I would have been strongly in camp Atmos for music. I think atmos is a great equalizer, enabling an engaging experience across a wide range of sub-optimal or even very poor rooms where stereo is dissapointing; I see that as a real strength of the technology.
The bigger issue is, I think, artistic and mixing decisions. While a few Atmos mixes make excellent use of the technology, the vast majority feel gimmicky or distracting—like a random guitar strumming on the ceiling (or whatever)—pulling attention away from the music. And to be fair, that seems more like a mixing philosophy problem than a format limitation.
For movies, though, I strongly prefer Atmos. With visuals supporting the experience, it just seems to work better. Though I still have a strong preference for ambiance-only useage in movies; pinpoint effects outside the width of the screen break immersion in the on screen world and pull my attention back into the room... for me, any useage other than ambiance seems counter productive to the intention of driving immersion.
Of course all IMHO, YMMV, etc., etc..