Dave Rat, of Rat Sound/RHCP/Bassnectar/etc fame, has some very interesting takes on the wall of sound idea using modern equipment. The core of it is that speakers are bad at polyphony, so if you can avoid it, you can produce something that sounds more natural to human ears, and do so in a larger area. The way to avoid it is more speakers, more stacks/arrays/etc. You don't necessarily need an array per instrument, bec…
Another advantage of individual speakers for each instrument is that it allows positioning them without the phase cancellation artifacts you get with a stereo setup. It's obvious with some sounds, e.g. try playing some mono pink noise on stereo speakers and move your head. Then try again after hard panning the audio to only one of the speakers. This is why adding a real physical center channel makes dialogue clearer…
This is also what Dave Rat is on about, in addition to IM and combing concerns, when explaining why a speaker per instrument sounds better than a mix: not just that it's a single point source, not just that it's doing one single job, but that all the sounds come from discrete points nowhere near each other. Just like an acoustic band using no reinforcement.