More sources = possibility for better localization over a larger area. Fourier theory holds. Movie theaters have many, many speakers surrounding the seats for this reason. However, at 11.2 the sheer complexity of the system becomes somewhat daunting (even to a Physics major); installing wouldn't be a problem but exploring the optimization phase space would drive me nuts. "What happens when I turn this one a bit this way, and that one a bit that way... how about all three of these a little this way... what if I raised these... how about tilting them..." etc. Professional optimization/setup may be required to get the best out of an 11.2 system.
Nevermind the cost of speakers more than doubled from the 5.1 era.
Here's what bugs me most: very little music is recorded this way, so most of the usage of a system like this will be for movies. This system is flat-out pointless for DVDs, as there is just not enough room on the disc to fit 13 channels of audio at normal quality (and "normal" for a DVD - DTS or DD - isn't even lossless). Therefore it must be targeted at the HD market, but I am not sure there are any players out for Blu-Ray or HDDVD that have this many analog outputs. To truly take advantage of this size of a system, we need a new audio format (probably based on HDDVD or Blu-Ray) that can support 13 lossless channels. I haven't heard of one, have you?
Yamaha will no doubt have an algorithm to convert sources up to the 11.2 level, but why not just listen as the music was mixed? Upconverting stuff like that (Neo:6, Prologic in its various forms) always seems like a cheap trick thrown in to justify the cost of the system.
Then again, I am a stereo guy.