PS Audio tried the planar coaxial approach with one of their early prototypes and gave on on this design.

I heard that exact setup, and it was ..... not good.
In fact, I've also run a coaxial system in my own home setup (passive and later fully active). It was meh. Now that I think about it, I've actually heard quite a few coaxial setups over the years and none of them sounded amazing.
With coaxial speakers that had a round woofer and a round tweeter in the middle, the soundstage never left the speakers. With coaxial speakers that had the drivers co-located (ie, the tweeter in front of the midrange) the midrange had this weird ghostly quality to it. Pretty much like if you put a big ass tweeter in front of your mouth, it's going to make your voice sound weird.
In some applications, maybe you can't get away from a coax setup due to space limitations (like a car), but in all other instances, it's best avoided if you want the best sound quality.