Neither of these options is ideal, of course. As Linus stated in many of his videos, discrete drivers are usually smaller, cheaper, and poorly placed. Meanwhile virtual surround can make normal music sound very funny, and you'll constantly have to switch it off when you're not gaming. More often than not, as far as video games are concerned, virtual AND discrete surround is more often becoming an unneccesary feature. More and more games just mix a virtual surround experience into your stereo headphones without any setup or special drivers.
If you want to watch movies or play video games with seperate audio channels, your best bet is virtual surround like dolby headphone for your stereo headphones since DVDs and Blu-Rays use a seperate audio track for each channel.

But I want a surround sound headset! What are the advantages of a good pair of headphones with a cheap mic?

The problem with creating a headset with a built in mic is that if if breaks, you end up having to buy a whole new unit (a problem for you, not the headset maker!) , and the fact that both exist in the same device with complicated cable routings and moving parts for the mic attachment means the device is even more likely to break. Also, since you're paying for both, you're getting less money in BOTH the headphone part and the mic part. Our suggestion is get the best headphones you can and then get the cheapest mic possible and attach it to the headphones or stick it on your desk. Properly leveling your mic will make it sound better than putting it next to your mouth, except in very high noise environments like sports stadiums. Does Brian Williams give the Nightly News with a boom mic? Nope, it's a clip on!