I haven't used Schiit's process, but it's probably gonna be like an analog version of what iFi does to expand soundstage/crossfeed, to lessen the 'stereo' effect. Virtual surround/spatial audio actually takes in 7.1 info and converts that into emulated surround, so it's a more involved/complete process.
I'm sure you'll still want the latter, as you're using real surround info.
I recommend getting the Steelseries GG software for free, which enables virtual sound devices that you tie to your real dac/soundcard and you can enable their version of surround emulation with that with any audio device. I think it's remarkable.
I might prefer it to Redscape or the others.