Is the suggestion that Dolby Atmos should be considered a failure? Or just the Atmos speaker modules?
Because my (in-ceiling) 7.1.4 Atmos system is amazing, and for me is much more than a "marginal" improvement. I've never owned a system with upfiring Atmos modules, so I can't comment - though I find your criticisms to be well-founded. I never understood the marketing BS about the Atmos Modules being the "preferred" solution. Wasn't one of those statements even attributed to Andrew Jones, the speaker designer?
In my system content up-mixed through the DTS Neural X or Dolby Surround to include the height channels is noticeably better in many cases, too.
To nitpick further, I'd consider it the first big breakthrough in twenty years, which is about how long I've been following this hobby. Moreso than DD EX, DTS-ES, or any of the various other upmixers that gave us pseudo 7.1 out of our 2- and 5.1-channel content. Full Disclosure: Dolby did just pay me $1,750 to say this on the internet. OK, not really.
On that note, if Atmos isn't the most significant breakthrough in Home Theater Sound in 20 years time, what would you consider it to be?
Overall though, I enjoyed this article like most of the content on this site. Keep up the great work!
[EDIT: I feel dumb, not seeing that this comment thread was pretty long already, and you've already answered the question I asked at the top. Doh!]