"..As you say you can't create more object channels using two AVRs. Isn't that the entire point of Atmos to be able to move a sound in three dimensions with precision?"
I probably should have been more explicit, but in the interests of brevity, I was trying to be as concise as possible. You are right to say that it is a complex subject & one that is difficult(for me) to summarize in a few paragraphs. What I was trying to convey, is that you can't implement more object channels than those provided as options for configuration on the ATMOS receivers(or preamps) in use.
What you gain by using multiple ATMOS recievers is the ability to use as many of the available options as you wish. In my circumstance, I had a Dolby TrueHD receiver that used "Wide" channels. When I bought an ATMOS preamp, I had to give those up to get rear height channels for ATMOS. Marantz made me choose between rear height or wide channels. Since I missed the sound of my wides, I added a 2nd ATMOS receiver and activated ITS wide channels, I now have both wides and 4 height channels in ATMOS. Each of those channels is recognized as unique by the ATMOS processors and objects are sent to the appropriate channels. Height channels are configured in the 2nd ATMOS receiver, but with no speakers connected, so the processor "thinks" they're there, but there is no channel duplication or overlap, since those duplicated channels remain silent.
"..If you want more than one speaker to play each channel connect more than one speaker to each amplified channel of a single AVR "
Providing more speakers for each channel isn't the point. The idea is to add channels capable of providing unique information when appropriate. Using 2 ATMOS receivers is one path to that goal. Another avenue available can be pursued with Scatmos or Zakmos as I mentioned prior. In those configurations, common information is stripped out of any two given channels and placed in a new additional channel in the same manner as your center channel is created in Dolby. It should be said, that most of what you hear in an ATMOS presentation isn't the object information, but rather the Dolby TrueHD presentation. The objects are the frosting on the cake, providing the occasional "cool" sound effect. If an object is shared or panned between two channels, instead of creating a phantom image, using Scatmos etc. will properly place that object in a created physical middle channel as intended.
"..The receivers have to have the same input and volume control commands otherwise you can't switch inputs or adjust volume with one remote. "
Many people implementing these systems use "Harmony" remotes to get around that issue. Macros are programmed into the Harmony as required to adjust gain or source selection if need be.
"..doesn't the volume have to change at exactly the same rate to maintain the channel balance? "
n my configuration, this isn't an issue. I run the outputs of my ATMOS preamps into a common processor, so I only have 1 volume control to adjust when in normal use. I get around the source selection by using the networking provided by Denon & Marantz. I just click on my computer screen with my mouse to change sources. I'm currently running the duplicate feed out of zone 2 of the primary ATMOS preamp.
"..When you set up each receiver (with or without DSP) it can't do anything for the problems caused by the speakers connected to the other receiver playing at the same time."
Maybe I don't understand your concern, but mid grade gear like we're talking about doesn't use a microphone to "listen" to channel balance ot timbre when in normal use. It only interrogates channels during training when you set it up. Since I use a Datasat, I don't bother with Audessey, but if you're concerned about that, you can either swap speakers temporarily during setup using banana plugs, or just play the channels being interrogated on the alternate reciever when required, so that the software hears "something". There is a great deal of detail published about these procedures if you Google the subject matter I referenced earlier.
"..I completely agree that upward firing Atmos speakers don't work well. You need ceiling speakers to get the correct effect. " Common ground at last! 😉) Height speakers also work well for that purpose.