Every surface visible in that picture is a hard reflecting surface, starting at the floor, ending at the ceiling. You'll never get good imaging, as you're hearing multiple reflections off every hard surface there. The first step towards good sound would be to carpet the floor.
My living room is nearly acoustically perfect, but there's not an obvious treatment in sight. The floor is carpet, the ceiling is acoustical tile, and the walls are covered with thick, soft, textured wallpaper. It's acoustically pretty close to Carnegie Hall, while I suspect your room is acoustically closer to the subway you ride to get there.
My dining room has hard surfaces like the room shown in that photo. Not good for acoustics. More like an echo chamber. My theater on the other hand, while not as good as Bills, isn't bad -
So IMO the definition of a good soundstage is, does the train going by in the Blu Ray " Unstoppable " sound like train sounds coming from some speakers, or does it sound like a freak'n train coming through your room? It takes a lot of work on the room and sound system to get it to sound realistic and really good. But, it doesn't necessarily take a lot of money.
I did some room treatment recently, and ( with new speakers and a new Denon 4520 ) now have the best sounding home theater I've ever had.