Hey, Royal!
Yup...Phals, those darn Phals...
Yes, bottom leaves do naturally yellow and drop with age.
As some have mentioned, it can take a long while for them to establish themselves. But leaves never go limp in this process.
For example, my little Phal appendiculata put out a new leaf after a month of acquiring it. But...it finally put out a new root well after a year of obtaining it (I got it in August of last year).
Just remember they grow in tropical lowland or midland swamp forests in Asia, sometimes even near large bodies of water (large rivers or streams).
Moderate to high humidity helps (60% - 100%).
Temp: intermediate to warm (60 F - 90 F), ideally. If it shoots over a hundred make sure there's lots of ventilation in the room (open windows, fans - just don't aim the fans directly at the plant), and watch how fast the media dries out. Maybe even a large bucket of water underneath can help if the temperatures go that high.
I will explain the whole temperature thing a little more...
In Indonesia, there are very few, if any, orchids that survive temperatures over 100F in the wild. Many of the orchids are found in higher elevations. My parents keep telling me orchids in the wild start showing up in places that get to be in the 90's F. The higher up you go in elevation, and the more the temperatures become more intermediate, the higher the orchid diversity.
Believe it or not, there are certain places in Indonesia that aren't steaming hot houses. Some places that are still "green" and in the middle elevations are cooler and much more comfortable to be in than the blistering hot cities.
If you've ever grown a Pleurothallis, watering is just like that. Allow the media to dry to dampness, then water again.
However, I come from the school of never grow Phals in full moss. Potted in bark is fine. Potted in bark with thin moss top layer good. Mounting them is in my opinion a much better way to go. Or if you have low humidity, semi-hydroponics might be for you.
In fact, mount culture and semi-hydroponics is closer in principle to the way a Phal grows in nature (okay...mounting is obvious, s/h takes a bit more imagination).
As someone mentioned check the roots. With Phals, the main focus will be the roots.
Light is bright shade.
I'm sure you've heard my spiel and seen the pics in the links I've posted in the past, so I won't continue on unless you need more specific care info.
I also want to say...
I agree with you, Catts and Laelias are much easier to grow than Phals. Before I understood Phals, there were so many that made it to an early grave compared to Cattleyas.