Could be, at the time it was more advanced then what AMD had to offer.
Developers don't have to use anything. The 3d audio hardware in the consoles is most likely not going to see as much attention as ray tracing or graphics in general. SSD's are also most likely going to be more prioritized aswell.
I doubt the audio processor in the xbox is specific to atmos. I don't see any reason why the 3D audio hardware in the consoles would not be used extensively. Game engines and game studios have audio teams. They're going to use the hardware that's given to them.