Not sure where you got that definition of stereo! The word stereo actually stems from the Greek word for solid. In modern usage it refers to playback through two or more speakers. I don't think two-channel stereophonic was designed per se, rather it evolved and continues to evolve, especially outside North America.
The problem with multichannel is that it requires a much higher expenditure in money and space. Stereo on the other hand seems simple and clever.
Never thought an audiophile here would baulk at the cost! Agree a little bit on space, I've had to find room for two rear tower speakers, but then I deliberately shun a centre channel. The four height speakers are flush with the ceiling. On the other hand, my TV (home theatre) shares the same living space as my 'stereo'.
It is quite obvious to me that if you have say 9 channels available, you can always choose to use just two. Many multi-channel classical recordings tend to use the extra channels for ambience, but some really open up the immersive experience. Add in video from the Berliner Philharmoniker's Digital Concert Hall and you may be in for a real treat.
Not so much in the pop/rock space but try Dire Straits on SACD, or Pink Floyd in Dolby Atmos.
Personally, I prefer a simple microphone approach, exemplified in the US by Mercury Living Presence, RCA Living Sound and then Telarc. Set the microphones and recording gear up and let the performers control the balance.
In Australia there was a series of adverts for the Northern Territory, about the most remote tourist destination imaginable. The tag line was "If you never ever go, you'll never ever know".