We're talking about virtual surround, right? How well does that really work?
I'm a head-fi geek and virtual surround always goes wrong, sound-quality-wise. Still a bummer they don't have it.
Dolby Headphone works pretty well and sounds good. It's very easy to discern sound directions, I really wouldn't want to play games without it. In multiplayer especially, it's a huge advantage. There are a few differing virtual headphone surround technologies out there, not all of them are passable.
Regarding movies, I think it comes down to preference: But "The Pacific" was what convinced me, a pretty compelling experience with Dolby Headphone.