Spatial audio is pretty good these days on some titles. It's just most folks don't have a sound system that can really do much with it. Headphones can only do so much in this arena.

Couple a modern AAA title (like Battlefield 6, etc.) with a proper Atmos sound system and you will likely be pretty amazed. Even a simple 5.1 setup is pretty decent for hearing footsteps behind you/etc. which actually does help with gameplay.

I haven't kept up on it as my computer gaming area doesn't lend itself towards a proper speaker setup these days, but playing with headphones on lately has made me start to look into this again. I need to find some high quality tiny cube speakers or something to be able to put in weird spots on the ceilings/walls.