Recreated image height is a function of the captured phase relationships in the recording or a product of phase manipulation in the studio.
Preservation of phase/time information definitely seems to play a huge role, but I also think there is a certain psycho-acoustic effect which is important: We expect the piano to "image" in a certain way, therefore we tend to arrange it that way in our mind. I'd be curious if demos of height "work" if the listener isn't told (and doesn't know) what to expect, i.e., if they could be created for arbitrary sounds without providing any visual hints. Years ago I bought an "Aureal 3D" sound card that used HRTFs to position sounds in space via headphones. For up-down effects, it was really only effective if you had a visual cue, such as in a 3D game.
An additional concern for me is that the geometry of the speaker array strongly affects my own perception of vertical imaging. For example, I have MTM style speakers (GR Diluceos) and sit about 8' away with 8' speaker separation in an equilateral triangle. If my ears are above the tweeter, the image tends to "project" upwards from the speakers, if my ears are aimed at the tweeter, the image loses some height but gains width and clarity, and if my ears are below, the image projects mostly downwards.
My personal theory is that given a vertically symmetric array, speaker, and seating position, only recognizable sounds (e.g, toe-tapping=down, cymbals=up), or sounds coupled with visual cues (e.g., home theater), should be distinctly placed in the soundstage above or below the center of the speaker array. Given perfect vertical symmetry, up and down become completely ambiguous and no repeatable engineering trick should be able to simulate vertical imaging without playing upon the listener's expectations. Perhaps one possible counter to this argument could be that we subconsciously assign heights to frequency ranges, regardless of phase or point of origin in space

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There are some recordings, of course, which seem to preserve (or simulate) spatial information. Nick Drake's Pink Moon, the piano is far, far up and far, far to the left. It is so apparent and distracting to me that I usually picture my room being replaced by some synaesthetic reality, with a ghostly image of a piano hovering 10' diagonal up and left beyond my wall

. But, notably, the piano tends to be left and not up when my ears are aligned with the horizontal plane of the tweeters. Another example is Knots by Gentle Giant... a xylophone (I think?) projects perfectly across the entire soundstage, about halfway between the listener and the speakers, usually a few feet up. THAT is definitely one that impresses the guests

. But, again, my perception of height varies greatly with my ears' vertical position relative to the speakers.
This is a great thread... much to think about
