Will be a lot more calculations to get it working for a game, as you'll be moving around, not stationary. And applying that to each and every sound in the environment.
Would be cool yes, but I'm sure you'd be able to get a better/smoother effect using 5.1.
As this mainly relies on the idea that one ear can't hear what the other ear hears, it's a bit sucky when wanting to play it on your surround system.