I understand that, but left out the "No, " because I don't know if you fully understood what I meant, and what I meant doesn't necessarily contradict what you are saying.
What could be done is the following:
You could put all the sound in the standard surround stream, and just put difference signals with location information in the objects in the additional (JOC) stream(s).
So for example in the regular left front channel you could have some signal X + Y, and played back on a regular non-atmos system you would hear X + Y out of the left front speaker. And an object could contain signal Y with location information: azimuth 30 degrees left, elevation 30 degrees up, and in what channel or channels of the standard surround stream Y is already present. Then when an atmos decoder is used it can substract 0.5*Y from the signal for the front left channel, so X+0.5*Y remains, and send 0.5*Y to the front left top speaker (if that is at 60 degrees elevation). Then Y would be panned halfway between those 2 speakers. This is just an example. In general you could say: susbstract Y from the normal channel(s) where it is present and re-divide/pan it appropiately over the available speakers.
This way that particular sound is always played somewhere, if not in the proper location on a non-atmos system. I find it hard to believe that instead Dolby would do it in a way such that certain sounds simply are completely left out on a non-atmos system. I would hardly call it compatible with non-atmos systems then. And difficult to get the overall balance right on both non-atmos and atmos systems.
But I simply don't know what they do exactly, so still you could be completely right.