Concerning absolute localization, in frontal position, peak accuracy is observed at 1÷2 degrees for localization in the horizontal plane and 3÷4 degrees for localization in the vertical plane (Makous and Middlebrooks, 1990; Grothe et al., 2010; Tabry et al., 2013).

from https://www.frontiersin.org/journals/psychology/articles/10....

Humans are quite good at estimating distance too, inside rooms.

Humans use 3 cues for localization, time differences, amplitude differences and spectral cues from outer ears, head, torso, etc. They also use slight head movements to disambiguate sources where the signal differences would be the same (front and back, for instance).

I do agree that humans would not perceive the location difference between two pixels next to each other.

Edit - I'm not sure that's the same thing? The release talks about pixel based sound, the linked paper is about sticking an array of piezoelectric speakers to the back of a display.

edit 2- You're right, the press release is pretty poor at explaining this though. It is not the pixels emitting the sound. It's an array of something like 25 speakers arranged like pixels.

https://www.eurekalert.org/news-releases/1084704