Hi Jerry, I'm trying to be self effacing for the two of us here, but we both probably know enough just to be dangerous.
Firstly, may I ask you how delay is tied to frequency? (sorry, and thanks.)
1st order does require that the drivers remain relatively flat throughout a much wider passband. The xover point between tweeter and mid will be very high (since a tweeter can only go so low, but even then it still requires a wide passband nevertheless), and of course the mid must be able to really go quite high. The drivers need to match well. I have read that Dynaudio, BW, and particularly Thiel have extensively used 1st order. I am not as sure about the first two.
The biggest reason to not use 1st order, and it seems to be a doozie, is because offaxis response hurts for it. It seems with all of the recent DBT results of listener preference that offaxis response is a really important thing. However, while I can give an educated guess as to why 1st order doesn't do well here, I am not going to embarrass myself unnecessarily without the benefit of further research.
While you mention "align the voice coils on the vertical plane", in fact Thiel is known for their sloped baffles. They are sloped 15 degrees backwards, because 1st order xovers are 15 degrees out of phase; the sloped baffle now puts them perfectly in phase. It was TLS Guy who taught me about the last part, after picking his brain on 1st order. Annunaki was the first to teach me about the fundamental design differences at the beginning of my post, years ago.