Tim, Tim, Tim. You are saying perceived position is ONLY contingent on arrival time. I'm telling you that it is also contingent on frequency profile. Micro is spot on that even with one mic and one speaker distance trigger cues can exist. These differences in frequency are things we hear in real life. High frequencies trail off faster than low frequencies as distance increases. That is a fact. The ratio of direct and indirect sound changes over distance. Another fact. We experience this daily and will associate the frequency profiles as near or far. Again one mic, one speaker, conditioned respone, perception of distance.
You're missing the point. I'm not saying position is only contingent on arrival time and I agree with most of what you said above. What prevents these elements from becoming "height information" is the lack of anything in the recording or playback systems, to differentiate them. Is it distant? Sure, got that. Is it off-axis? A lot less likely that there's anything there given the way most microphones work, but I'll give you the point for the sake of argument.
Now you have the signal captured. The recording has picked up a tone from a cello that is X% reflected sound, at X volume, with X FR alterations relative to the close, direct sound. It sounds as if it is "X distant."
X distant where is the question. Up? Down? Out? Back? Left? Right? With one mic, one channel, one speaker there is nothing to differentiate up from down. You have lateral information because you have lateral channels. In the vertical plane your system is mono. So if, in the vertical plane, you hear the standing singer's voice a couple of feet above the seated player's cello, it is because that's where you expect it to be (not that there's anything wrong with that), not because of anything in the recording or the playback system.
Another possibility is that you're sitting too close to a tall driver array that is failing to cohere before it reaches your ears. Of course then, if the cellist plays a high enough note, it will suddenly jump up and join the singer. It's a bit alarming that some audiophiles consider this a quality of better speakers.
And one more time, before I'm misinterpreted again: None of this has anything to do with a "sense" of height, or with speakers projecting a sound stage taller (and wider) than their boxes. All of that happens. Even in my modest system. What it has to do with is the ability of stereo to create a differentiated and even partially accurate vertical image, similar to the horizontal image it creates with its two lateral channels. Stereo does not do this. It cannot do this. You can only place these vertical elements in that plane with your mind.
Tim