I don't specifically know the answer to that, but I know that Virtual X will up mix standard multichannel sound (7.1.4), and of course you can probably opt to listen to multichannel rather than Atmos from most sources and enjoyed height.
And it may do something with Atmos… I'm just not sure. But Virtual X seems a good option if you can't put speakers in your vaulted ceiling, and I have the sneaky suspicion that Virtual X will work better with any number of surround speakers then it will from something like the Yamaha YAS 207. And possibly the newer soundbars will add in a little additional processing to the mix, more fully exploiting the potential of Virtual X.
Remember, the forebears of DTS demonstrated a complete 360°sound field using only two speakers in their laboratory, and so psychoacoustics is a very interesting thing.