I’m not sure I fully understand your argument here - apologies if I’ve misunderstood. Both Dolby Atmos and DTS:X have algorithms (Dolby Surround and Neural:X, respectively) for upmixing existing 5.1\7.1 soundtracks and making use of the height channels. It’s quite effective and the results are often close to true Atmos\DTS:X. However, those height channels have to be physically present in the system in one form or another, they are not created by a psychoacoustic effect.
Edit: if you are thinking of the algorithm used for headphone listening, I don't know if is even possible to implement this for a floor standing system.
Main system - Trinnov & Vivid Audio. Others: F80 + Raspberry Pi and Squeezebox systems.