Beamspace dimensionality reduction, a classical tool in array processing, has been shown in recent work to significantly reduce computational complexity and training overhead for adaptive reception in massive multiuser (MU) MIMO. For sparse multipath propagation and uniformly spaced antenna arrays, beamspace transformation, or application of a spatial FFT, concentrates the energy of each user into a small number of spatial frequency bins. Empirical evaluations demonstrate the efficacy of linear Minimum Mean Squared Error (LMMSE) detection performed in parallel using a beamspace window of small, fixed size for each user, even as the number of antennas and users scale up, while being robust to moderate variations in the relative powers of the users. In this paper, we develop a fundamental geometric understanding of this ``unreasonable effectiveness'' in a regime in which zero-forcing solutions do not exist. For simplified channel models, we show that, when we enforce a suitable separation in spatial frequency between users, the interference power falling into a desired user's beamspace window of size $W$ concentrates into a number of dominant eigenmodes smaller than $W$, with the desired user having relatively small projection onto these modes. Thus, linear suppression of dominant interference modes can be accomplished with small noise enhancement. We show that similar observations apply for MIMO-OFDM over wideband multipath channels synthesized from measured 28 GHz data. We propose, and evaluate via information-theoretic benchmarks, per-subcarrier reduced dimension beamspace LMMSE in this setting.