In my opinion, yes it does.
If you take classical music that has been recorded using two microphones spaced away from each other with a small divider between them, you can get a very accurate soundstage. Not quite binaural, but very god.
These types of recordings already have crossfeed, that is, some sound from the right side is being picked up by the left microphone, and vise versa.
Using crossfeed in this situation makes the music even more mono, so it actually shrinks the stage.
When using crossfeed in older rock music though, works wonders. When the drums or guitar are in one channel only, crossfeed is almost a necessity for me to listen to it. It's too fatiguing to listen to otherwise.