[disclaimer]I'm no expert by any means regarding home stereos.[/disclaimer]
A large portion of it might have to do with positioning. If you're moving around a lot within a room, or you're not sitting in a centralized spot, listening to music in stereo can be erratic. If you listen to the radio while doing housework, or cooking, or anything where you're not stationary, the 2 channels will indeed sound goofy, and a mono setup might be better (or rather, your centralized stereo setup. Personally, I can find a difference between a centralized stereo and mono, and stereo still sounds better.
Lots of music is made with stereo in mind (or quadraphonic, but there's not much of that around these days). Lots of it isn't. Something like bigband (Glenn Miller, Duke Ellington) doesn't really matter if it's in stereo or not. A lot of pop music isn't recorded with nuances like stereo in mind (or a lot of other things, like quality, but that's a different discussion). The balance is pretty much neutral enough not to matter.
Then there's stuff like Pink Floyd or Frank Zappa that shouldn't be listened to with anything less than 2 channels. I mean, it wouldn't make sense to buy The Who's Quadraphenia(sp?) and listen to it in mono. Listening to this kind of music on a good stereo or with headphones adds another whole level of interesting stuff to enjoy, and these kinds of musicians realize(d) this.
So you've got 1 system to play 2 styles of recorded music. If you want your music to be more ambient (something to listen to while you do stuff), your arrangment is probably better for you. For TV/Movies/serious music listening, stick with the way it's intended to be heard.