You make a good point about recording. 24 bit is necessary for the recording and production process, but not for delivery. 16 bits is more than enough for delivery to the consumer. But don't take my word for it. This is a quote from Dr Aix:
"What about 16 bit vs. 24-bit audio? It’s true that 16 bit linear PCM audio does not quite cover the entire theoretical dynamic range of the human ear in ideal conditions. Also, there are (and always will be) reasons to use more than 16 bits in recording and production.
None of that is relevant to playback; here
24-bit audio is as useless as 192kHz sampling. The good news is that at least 24-bit depth doesn’t harm fidelity. It just doesn’t help, and also wastes space.”
The full
article is here.
I think that all sample rates and bit depths at CD quality or higher are capable of good sound. Compression, on the other hand, can ruin sound quality. The greater the compression, the worse the sound. A 192kbps mp3 will sound worse than a 320kbps mp3.
Atmos streams at 768kps (through Tidal and Apple). I admit I don't know the details of the compression and encoding algorithms. But it carries roughly 12 channels of audio (7.1.4), the equivalent of 6 stereo streams. 768/6=128. It seems like the equivalent compression to a 128kbps stereo stream... Which doesn't sound good. Maybe the compression algorithm is better than mp3 but I believe compression is the limiting factor in the sound quality of the current Atmos streaming services.