You should not forget that after they discuss this approach in more detail they close to say at the end of Section 6:There are many approaches to relativistic quantum field theory in 4 dimensions , none so far leading to a construction. So the statement by Fredenhagen, Rehren, and Seiler that you quoted is an article of faith, not a fact.
Fact is that all very high accuracy predictions (which only exist in QED) are done starting from the covariant formulation.
Fact is also the gauge theories that have been constructed rigorously (in lower dimensions, e.g., QED_2 = the Schwinger model and 2-dimensional Yang-Mills) were constructed through the covariant approach.
As you well know, Balaban abandoned his work trying to construct 4D Yang-Mills theory through a lattice approach, and nobody took it up again. The continuum limit which should provide O(4) invariance seems too difficult to be tackled. Even then, one obtains a Euclidean field theory, not a Minkowski one, and needs the Osterwalder-Schrader theorem (which assumes exact O(4) invariance and reflection positivity) to get to the physical theory - and the resulting physical theory is exactly Poincare invariant. I am not awae of an approximate lattice version of the Osterwalder-Schrader theorem that would provide a physical, not quite covariant theory. All this shows that exact poincare invariance is fundamental. It is even used to classify the particle content of a theory - on a finite lattice there is no S-matrix and no notion of (asymptotic) particle states.