[LAU] more than 4 channels for listening? Really?

[Bearcat M. Sandor]

Folks,

I'm an audio lover that prefers smaller speakers in smaller spaces and i
don't need/want 5-8 speakers in my listening space.  I have found that i
prefer the effect of vocals/sound effects that are mixed in center in
stereo speakers,  over a center channel.  It sounds more natural and
rounded to me.

I would think that the same thing could be done in the rear speakers of
course and also front to back by adjusting the front-back balance of
sounds.

Couldn't one create the sound of a fly moving through out a room simply
by adjusting the balance of 4 speakers?

If so why do we need more than 4 speakers?

I have an audio system for which i'd like to set up 4 channels. I have 2
Anthony Gallo Acoustic Reference 3.1s and would like to swap them out
for 4 Stradas and 4 subs (with some extra money of course).  

If i do that and play back a 5.1 or 7.1 movie soundtrack or music disc
what am i going to not have vs a full 5 or 7 channel set up?

Will things down-mix properly (using pulse audio for reference)?

Bearcat M. Sandor