I've made another video (but I still need to upload to YouTube) with a more traditional ascent profile (gravity turn at 50k or so). The bottom line is that the vertical profile is not that inefficient comparatively. I managed to save just 500 m/s vacuum DeltaV with a gravity turn, at the price of making the ascent much much harder to pilot (overheating being an even greater issue; staging high risk of collisions.) At the end of the day, if you can pull 16g acceleration with the upper stages for long enough, accelerating to the 3,000 m/s or so of LEO velocity is so fast that the loss of speed to Gravity is minimal (in this case, roughly that 500 m mentioned above.)