Distance, echos and object obscurity to sound is literally in games now. I'm not sure it makes any difference if it hardware or software. Onboard sound now from a Mobo is better than those older sound cards from the early 2000s anyways.
3D positioning has been the best it has ever been with ability to create true 3D audio space through software in game engine as required. I have honestly no idea what you are on about and really just seem to want things to be as your rose tinted glasses push. It's honestly maddening.
Hunt:showdown and Hellblade are excellent with directional sound. DTS:X utilised in Witcher 3 again is really good if you have sound system/headphones for it.
Onboard sound are all pretty crappy. I doubt they are even better than a dedicated soundcard from the 00s. The Xonar cards must be over 10 years old now and they are still far better than anything onboard, especially for headphones. The modern options are external DACs ofc as they are self contained and more convenient
Onboard ones lack the physical components, they are emulators basically.
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