Sure.
If you set up a stereo pair, then carefully arrange the instruments around the pair, taking care to balance things left/right and keeping proper distance from the mics to get the desired balance between direct sound and room sound, you can get an excellent recording. In many respects, it's a hell of a lot easier than dealing with a couple of dozen tracks. It probably will not sound close-mic'd, but that may or may not be what you want.
The mics you choose, the room you are in, the quality of the instruments and sound, the ability of the band to play tight, etc. all become critical. (As they should be anyway
). You can't fix anything in the mix.
I just made a pretty good recording with a pair of omni mics on a Jecklin disc. It was a jazz trio though - so a little room sound was more appropriate.
I'd be game to do it with a rock band. I love the omni/Jecklin thing. Omnis give you much more even response, especially low frequencies further from the mic. Omni room mics can really pick up a bass drum, for example. The Jecklin disc lets you use a pair of omnis while mitigating some of the drawbacks they have (all stereo recording methods have pros and cons).
