The Vifas have a poor offaxis response.
Ya, I can see what you mean. The fall-off off axis is quite strong.
... it has an inherent peak between 3 and 4.5 khz
I'll see what the SPL curve looks like on the baffle, with a 5.25" on either side (which will add a few small peaks due to reflections off of them). If it sounds bad, I'll try to cut the peak.
... power handling is mediocre.
I think it's going to be ok in the power department for this specific design. It's supposed to be a small MTM for small Indian rooms, see? I imagine some people will just stand them vertically, one on each side of their TV, and listen to them from 6-7 feet away in a 12-foot room. You don't need even 5W through the tweeter for such setups.
... Build quality is average...
I'm using this in a budget design which should be easy to build and give excellent sound for the budget, for small rooms. I think the build quality will be comparable to the other drivers I'm using here.
but because of its design, you need not flush mount it.
Looking at the construction and front plate, I can't see how you can avoid flush mounting it.
I would not recommend crossing it anywhere below 3/3.5khz.
For my modest power application in this design, I think the power handling won't be an issue, and I intend to do 4th order anyway. So I think I may look at something closer to 2.5k. It'll finally depend on the on-baffle SPL curves of this driver and the midbass units.
If I was building large floorstander MTM like the Asawaris, I'd not use this tweeter, and some of the reasons would be as you have mentioned. Even the SB Acoustics SB26STCN, with its small faceplate similar to this one, would probably be a better tweeter for such designs. But this one is a budget design for modest power handling in smallish Indian rooms, so this will be a good fit, I think.