Right, but there's a gulf between simple two-channel stereo and multi-channel stereo combined with n-objects which requires setup of those objects, fetching/cacheing and so on. Again, I imagine it is possible but far from trivial.
I am no software engineer so I fully admit I could be talking out of my ...
But I do think cacheing will/should likely play a role. Having downloaded Atmos tracks to my iPhone, they're not that huge per song track (I want to say they were around 20-60MB each (I'm looking at my Abbey Road Atmos download folder on my iPhone, Come Together is 33.7MB and I Want You (She's So Heavy) is 60.5MB). I know people can load their Apple TVs with a bunch of apps and games, but my 64GB version has less than a dozen apps and no games, so in theory it could preload the entire album with ease, let alone simply downloading the next one or two tracks to facilitate cacheing. And all my streaming devices are hardwired to my 400mbps internet so I know it's not an internet speed issue.
Interestingly, speaking of the Atmos files on my iPhone, playing them results in no initial pause/dropout (i.e. skipping around to any track doesn't result in any audible dropout. ***But*** when you play the medley (i.e. start with Mean Mr. Mustard to Polythene Pam to She Came In Through my Bathroom Window) if you listen very carefully there is a split second, and if I had to guess I'd say it is like 1/100th of a second or less, where you can hear just the faintest tick of a dropout. Nowhere near what you hear on the ATV4K to a receiver which is an easily audible dropout that's closer to maybe 1/10th of a second. But if you listen closely it's there.
So maybe Apple and its engineers haven't fully worked out how to do encode and play gapless tracks using the Atmos codec.
Here's another interesting thing I've just discovered. I went to the Atmos Sgt. Peppers version on my iPhone and you can hear that 1/100 (maybe 1/1000th) of a second barely audible pause between Sgt. Peppers (Reprise) and A Day in the Life, two tracks which should seamlessly blend together.
So my thought was "aha, maybe this is Atmos *and* a high-res lossless CODEC issue!"
But then I went to the Hi-Res Lossless of The White Album. The part where Back in the U.S.S.R. blends into Dear Prudence? Seamless. Gapless. Listen to the jet engine blend straight into the arpeggiated guitar. I played it back a half dozen times. No microsecond gap. It is possible.
(PS all these tracks/codecs I'm referring to are downloaded to my iPhone 12 Pro Max from my Apple Music subscription)