There have been many responses here about things like digital, transmission methods, etc, but not much addressing improvements of naturalness for (eg) music, so my suggestion is ambisonics, which was being supported by several electronics makers in the 80s. I am thinking particularly of B-Format of at least 1st order rather than 2 channel UHJ, of which most are aware.
Ambisonics in general use has fallen by the wayside for home use for a couple of reasons, but it is in extensive use in VR at 3 rd and higher order as it can be encoded for binaural and decoded with head tracking and HRTF to give amazingly good imaging and sense of depth. Its use in music reproduction is extremely good, even at 1 st order, in room. There are a handful of ambisonic 1 st order B-Format releases on Bandcamp, too.
A limit is that speaker rigs for beyond 1 st order increase in size, so beyond 3 rd order (min. 8 horizontal spkrs) becomes impractical in most homes. The limitations of 2 ch UHJ has done it no favours, so it’s a huge pity 3 & 4 (true 3D) channel UHJ never got to market, partly due to the cost of transmission channels in the 80s and the complexity and expense of ‘would be’ analogue decoders, none of which came to market. A lost opportunity, now we’re well into the digital age. Nonetheless, full 1 st order gives fully linear surround with stable imaging and no phasiness, for which hardware & software decoders are available currently.
An ignored technology for home use that just wants someone to pick it up and go with it again, I believe.