I've always considered them the "Bose" of our generation (built on shitty engineering) - they sound better and bassy and so they sound "good enough".

I was skeptical for a while. But I have a friend who is used to a 5.1 setup and moved to a much smaller apartment. He has switched to a soundbar with Atmos and says it is on par. The fact that he "downloads" Dolby Atmos versions of movies even when they are available for streaming added some weight to his opinion. I still did not compare myself so would not go to fight over this.

I don't know your friend, but people are not good at listening. There's a whole industry catering to audiophiles with products that can't pass a blind test. Cynically, I might suspect that your friend is trying to justify their purchase to themselves. Or maybe I'm wrong. But the anecdote doesn't convince me either way.