How are you gonna handle the relations that span across individual chunks... if a later chunk refers something from 2 chunks before using `it`, rather than proper name, how will you handle that? Because at query time, that later chunk would not match.
Humans usually have ways around that in longer documents eg page numbers, paragraphs, links.
If someone gave me a report, in my hands, that said “see ‘it’” I’d also be confused.
Absolutely a novice in this topic, but I would imagine that by simply having sufficiently big chunks it's simply not a problem? You surely have enough information in like a couple of paragraphs to denote in vector space roughly what it is about. So that both chunks would get found by a vector search, and then whatever is the logic it may put the whole original text of those chunks into context, but in any case enough so that an LLM can "reason" about the references in-between the two.