The main differences between those generations are the core CPU (the 2nd gen is an A12, the 1st is an A10) and the wifi 6 (vs 5 on the 1st gen).
Probably one (or both of those) aren't good enough to do what is necessary for the FaceTime.
Probably one (or both of those) aren't good enough to do what is necessary for the FaceTime.
I'm not sure the the A10, say nothing of the A4, could reliably handle group calls. To be fair to the A4 and A10, group calls weren't a feature of FaceTime until 2018. Could the A4 handle an audio or low-res video call? Probably.
You have a great recall of the timeline. I thought that it came out much earlier but I was mistakenly thinking of iChat AV. "In June 2003, Apple announced iChat AV . . ." [1]