The X-On Wall is a wall mounted omni directional speaker with a wide dispersion pattern. A wall mounted speaker with a narrow dispersion will bounce the sound off the ceiling so the sound will appear to be over your head as a ceiling speaker.
Dolby Atmos is an object orientated sound field, each speaker is an individual element so in theory sound objects as small as a bee or drone can move through your room in 3 dimensions. A wall mounted omni directional speaker like the X-On Wall will work but the images will be bigger and less defined. In the long run probably not ideal as new Dolby Atmos soundtracks are refined. Right now, for the majority of films and Netflix the on wall omni directional speakers will be fine but in a few years you will want the ceiling speakers.
As an option, in the future you could convert the X-On Wall to surround duties, add 4 in ceiling Atmos speakers and make a 11.4.1 theater with the right processor (and more amps)
When I was researching Atmos speakers the
RSL C34E was always the clear top choice among home theater builders.
I was concerned about beaming and guests sitting too close to a speaker because my ceiling is a little less than 8 ft. plus I needed a sealed design. Ideally Atmos speakers work best in 9' or higher ceilings. My solution was to use four Triad InWall Bronze/4 Surround speakers as Atmos speakers, they are a bipole design and worked out very well. I like the small 13" x 13"square grill, ability to go to 103dB, and the sealed cabinet, my attic has 16" blown fiberglass insulation. The only downside is the price and the 84dB sensitivity requires a high power amp. I picked up a used Adcom 5-channel amp with 60w/channel but a new small Class-D multi channel amp would be ideal. Used Triad speakers are always available on eBay for half or less the retail price, which is where I bought some of mine. The Triad InWall Bronze/4 Surround used to list for $550.00 each. The old dipole version can be converted to bipole by reversing the polarity of the rear facing driver, the arrow label points to the front.
https://triadspeakers.com/products/home-cinema/inwall-home-cinema/iw-bronze4-surround/