1. Vertical stacking gives you countless 'target' options. What you are trying to do is use your short or close-in runners to punch through holes on the advantage line. This graphic demonstrates that when the first or second-five is taking it to the line, their primary option is to put the left wing or centre into gaps with short passes. This can either lead to tries direct from first phase, or at least get you behind the line so the defence is scrambling from phase play.
2. My major issue with this is the sheer narrowness of it. If you don't go through the target holes with the short runners, then any other option is lateral. The only way you can achieve width in this formation is for players to run across the field. That means that the defence can align themselves narrow, they can hold and, if the Crusaders go wide, drift across and push them out to the touchline. This is something defences have found all too easy to do.
3. Israel Dagg is one of the major reasons why this formation has more drawbacks than benefits. He is a brilliant open-field runner and has shown that numerous times for the All Blacks, but for two years now he has really struggled at the Crusaders, to the point where he has been dropped, twice. He needs to be getting the ball in wide positions AFTER other guys have been doing the straight work. The problem is the Crusaders don't have a tank in midfield any more. Ryan Crotty is a good player, but he will never have the physical presence of a Sonny Bill Williams or Robbie Fruean. He won't hold defences like those two, which allows the split second of space that guys like Dagg thrive in.
It's very early days, but the Crusaders are clearly grappling with their attack structures. For me, abandoning this formation would be a good place to start.