they do it gradually so gravity turns the craft instead of angling the engines, which wastes dV
gravity drag stops being relevant once you're in orbit, at which point you need not to burn anymore to compensate the craft dropping, so no, the nose up altitude test isn't relevant.
the fact that you need to burn at maximum as soon as possible is correct, but also depend on your craft. if you have enough booster to propel you at 200m/s or more, you can use the booster alone and use the fuel engine after boosting and at start when v < 100m/s
I beg to differ. I'd like to see a test where this is the case.
The altitude test is appropriate because we can just imagine any thrust over 60km to be perpendicular instead. the thing is measuring your altitude is easier than remaining fuel.
The point is finding the method that leaves you with the most fuel at 60km, which is the minimum altitude you can get a stable orbit, after that, yes gravity drag is not an issue.
If the test was redone with an orbital manoeuvre in the end (with a bigger craft) I doubt the results would be different.
on top of that, I cannot recall a space launch that did not fire in on continuous burn(besides waiting for stages to separate).
going to make the same test with boosters and see.
EDIT: tested it with boosters bringing it up to exactly 200m/s with boosters alone, and it does work!
Craft went to 7600km with everything firing from the start, and got to 3000m/s at peak velocity.
But the one where the main engine was fired after the boosters, got out of Kerbins soi and reached a peak velocity of 3300m/s
so above some speed limit in the lower atmosphere it gets inefficient. I think this limit is above 200m/s though.