I know that panning in a DAW is basically just turning the right/left channel up, making the sound pressure in one ear greater than the other. But as far as I know, in the real world, the perception of directionality doesn't come from a difference in volume as much as a tiny delay in the time of arrival from one ear to the other.
I have tried manually phase delaying one channel half a milisecond or so, and it did work to an extend (making the sound seem like it came from the left), but it made the sound thin and not very nice. I'm guessing there is more to it than that :-)
Is it possible to fake this delay in a convincing way, and if so are there any VST plugins for stereo panning that takes it into account, and perhaps other factors too that I don't know about? And what are the problems with doing so, since it doesn't seem to be very widespread? I can imagine that there's a reason no daws seem to have it as a default panning option, what am I missing?