As bitter as I am toward Creative, their products still represented a giant step up from the current status quo.
Oh dear god, that entire situation is so FUBAR. Games have the unique advantage of synthesizing the entire scene from scratch, allowing virtual microphones to take full advantage of the playback system's capabilities. If an API like DS3D or OpenAL is used, such reconfiguration can even be done to closed-source games at the system level, much like GPU drivers forcing new features on old games through D3D/OpenGL/Vulkan.
With music and home theater, on the other hand? Aside from the tiny island of sanity that is binaural sound, home theater has been focused on pointlessly adding to the number of speakers on a horizontal plane since the quadraphonic era. "MORE SPEAKERS, MORE CHANNELS" has lead to 5.1, then 6.1, 7.1, 7.2, and soon 9.2, 11.2, and 22.2.
A more sane approach (dating back to Ambisonics in the 1970s) would be to simply model the instantaneous, volumetric 4D pressure wavefield of a scene, which can easily be calculated from as few as four microphones. This allows sound to be easily and dynamically remixed for any speaker arrangement or other listening setup.
But how are the usual players approaching the challenge of 3D sound that incorporates a Z-axis? DTS:X, Dolby Atmos, and Auro-3D all use a similar system of many (up to 128) tracks coded to point/directional sources each with 3D position/orientation coordinates, which are then rendered to whatever speaker arrangement much like a computer game, except that has zero relationship with what the microphones recorded and relies on extensive human labor to adapt to the format. Even worse, the recommended speaker arrangements are all the typical pointless circle of planar speakers, with a few ceiling speakers, and nothing close to the floor.
The same problem is facing photographic VR content, which is based on the same retarded spherical/cubic pano images from QuickTime VR, with an added Z-channel to fake depth. The correct approach would be lightfield photography, which creates a much more versatile and compact representation.
No, soundcards did hardware 3D when games increasingly used hardware 3D for graphics, and most computers were still using Pentiums or K6s that could barely handle file access for cutting-edge games. Before then, were 286-based potatoes and ancient 8-bit platforms that would cough up blood doing MIDI and 4-channel wavetable standalone, let alone in the background of a game.