Of course they are not all in the same location. That would be the same thing as having one speaker 5 times bigger. No they are placed arround the room. There is a lot of discussion about "where" to place them, but my opinion is that placement is not critical.Reagrding cancellation, look at it as a problem in probability, which is what it really is. What is the prbabilty that I will have five vectors - each sources magnitude and phase - that add up to zero? Its just about nil - doesn't happen. With two sources, it is highly likely to happen at some frequency and with one source it is guaranteed to happen when the source is at a node. But with five sources, it virtually can't happen.
Thats really the point. The five sources will always have a smoother average than any lessor number. Its simple statistics.