I'm not expert on anything really, and certainly not aquarium plants, but it would seem to make sense that you could use the old ones as fertilizer. Hell, that's what compost is right?
It's just that I've been told that rotting organic matter, whether it is plants, uneaten food, fish poo, dead fish etc can lead to an increase in the amount of ammonia and nitrites in the tank, possibly to a level beyond which the beneficial bacteria and plants can keep up with, and that they should be removed ASAP. Plus there's the possibility of giving nasty fungus(s) a place to grow.
On some of the other threads over the past week, people have also mentioned UMFD that they've had and being told by their LFS that they could have disturbed an ammonia pocket when cleaning the substrate. Makes me wonder that, if you use the dead plants to fertilize the others by pushing them down in the substrate, would there be a risk of releasing a deadly ammonia pocket or possibly creating another?
I haven't kept real plants for very long and as you can see, at the moment it's pretty much all I do have in my tank so I suspect I'm not the best person to ask....
Ami