Panic mode,
Thank you for your reply. I am grateful that you are willing to explain in such detail to beginners. I indeed did not have official training, but did extensively dive into the manuals and fora.
I understood your logic on defining A5 as a TCP and find it a very clever approach for eliminating one extra degree of freedom, as seen from above. I have defined all our tools in KRL with measurements gained from our CAD models and rotated their coordinate systems to match our typical base orientation. I do not work much with the teach pendant (rather KRL and the simulator), and as I read, the main purpose of setting your TOOL_DIRECTION are functions like align. I have not needed the function yet since I have all movements "hardcoded" using parametric distances and bases. I do read that splines take the tool direction in consideration, but have not yet seen any unexpected movements.
As for the X-axis movement, your comment clarifies my point of confusion. Since you did not specify the base in your code example, I assumed you had $ROBROOT selected and were defining a movement relative to the base of your robot, which had me scratching behind my ears.
Again, thank you for your time and ideas!