My understanding is that the basic principle of having a fairly long time gap between the direct sound and the first significant early horizontal-plane reflections in the studio control room is not obsolete, but that there are now better ways of getting there, such as the Reflection-Free Zone approach.
The RFZ stems from LEDE. Creating the initial time-delay gap is essentially what the reflection-free zone is about. The goal was to extend it by 2–5 ms beyond the ITD of the recording room, in order to hear the recorded signal as accurately as possible. This was either achieved through carefully controlled absorption or by redirecting the energy with slanted walls or panels. The latter has several advantages and can also be applied to the ceiling.
And this part of the LEDE design has been incorporated into the ITU-R BS.1116, EBU Tech 3276 and AES TD1001 standards, where the requirement is to attenuate the first 15 ms to a minimum of -10 dB. Of course, the LEDE design was much more stringent here, with reflections attenuated to a minimum of -20 dB, and preferably to -25 or -30 dB, making the reflection-free zone effectively anechoic.
The LEDE concept of retaining late diffuse energy is also still very much used in control rooms today. Not always with an ISD gap 2–5 ms longer than that of the recording room, but with a diffuse rear wall providing generally late-arriving energy. I doubt anyone has complete data on what is being done today, but I see this design principle being followed more often than other approaches, such as non-environmental rooms à la Hidley or Northward's FTB design. In my opinion, Northward's Front-to-Back (FTB) rooms are a clear step away from accuracy.
The longer that initial time-delay gap, the larger the perceived acoustic space, as
@Bjorn mentions:
In other words, if you can push the first significant reflections further back in time than they would normally be in your room, you can make it sound like your room is bigger than it actually is.
I think there is an important nuance here. The objective of LEDE was not simply to make the initial time-delay gap as long as possible. The requirement was that the control room's ISD should be longer than the ITD of the recording space, by at least roughly 2–5 ms. The idea was to allow the listener to hear the spatial information from the recording space before the control room's own reflections became significant.
So I wouldn't interpret it as “the longer the ITD gap, the larger the perceived acoustic space.” There was no goal of maximizing the RFZ or ISD indefinitely. The relationship to the recording space was the important part.
The roughly 20 ms figure is nevertheless very interesting. Davis connected it with Beranek's work on the best concert halls and with the Haas region, and this seems to have made approximately 20 ms a particularly attractive target when the room permitted it. But I see this more as a useful and perceptually significant region, rather than a rule that increasing the gap indefinitely will continue to make the room sound larger.
In fact, Davis described a fairly wide range of possible ISDs depending on the room. So I think the more accurate statement would be: the control room should have an initial time-delay gap sufficiently longer than that of the recording space, with a value around 20 ms being particularly interesting because of its relationship to concert-hall acoustics and the Haas effect.