Brain hemorrhages? You gotta be kidding me. It's just audio, not black magic.
I tried some recordings of holophonic sound online and wasn't very impressed - it's claimed to be much more realistic than binaural (btw: not "binatural") audio, but I didn't hear much of any difference between the two. Holophonic audio seems to be based on pseudoscience anyways.
I'm not sure how much computation it takes to render binaural recordings from synthetic sound sources - i.e. whether it would be fast enough to do in real-time in a game or not. It's worth looking into; there are probably some academic papers about it.