The main difference between coaxial and 2-way speakers is that coaxial speakers (or full-range speakers) use a single driver, or one source, to produce the sound we hear, whereas 2-way speakers use two separate drivers to respond to different frequencies on all the frequency spectrum. The tweeter is responsible for the high frequencies, and a woofer is exclusive to the lower frequencies. So even though coaxial speakers do their best to reproduce the broadest frequency range for us, they’re unable to reproduce very low and very high frequencies, meaning that both bass and the treble will be underwhelming and slightly distorted coming from coaxial speakers.
2-way speakers will produce superior sound quality because two separate drivers are each responsible for their own frequency range and will cover most frequencies on both sides of the spectrum. Therefore, 2-way speakers are unquestionably more effective and sonically superior to coaxial speakers and will provide a more pleasurable listening experience.