Sorry, but this idea is solving problems that don't exist. You can have separate tracks and separate speakers for individual instruments, but your ear is going to integrate it all the same in the end anyway. A good stereo system can image very well. A system where you have a speaker for every instrument might maybe be able to image a bit better, but obviously it would be hugely impractical. And it would only work for one type of band setup. And also think about what your room acoustics are doing to each speaker- that must be factored in. The challenges of calibrating a stereo pair to typical room acoustics is well understood, but you are advocating an entirely new system that may not be as amenable to traditional room acoustics. Remember that distortion is not a factor. Your setup would also do nothing to address the 'mud range' problem, insofar as it exists. Traditional recording techniques are already very good at addressing these problems.
A much superior alternative to your idea would simply to use an expanded front stage system, as can be done with object oriented system speaker placement. I don't mean to sound harsh here, but I don't think your idea does anything to improve what can be done with, say, a five speaker front stage running a sound mix from DTS:X or Atmos. I am not even sure it would offer a significant improvement over a well setup stereo system. You should look more into how speakers 'image' and how they present a soundstage. Of course, its not just the speakers but the recording and mixing techniques as well.