In general, there is no guarantee that the sequence $x_0, x_1, x_2 \dotsc$ will converge rapidly towards the solution $x$ of $Ax=b$. In that sense, the orthogonality condition is not useful at all.
However, there are practical considerations that are important when the sequence converges so fast that it is actually useful.
If you generate the basis $V_k = [v_1, v_2, \dots v_k ]$ of $K_k(A,b)$ using the celebrated Arnoldi method, then you achieve a factorization of the form
$$A V_k = V_{k+1} \bar{H}_k$$
where $\bar{H}_{k+1} \in \mathbb{R}^{(k+1) \times k}$ is an upper Hessenberg matrix. Now if we seek $x_k = V_k y_k$, then the orthogonality condition reduces to
$$ V_k^T A V_k y_k = H_k y_k = V_k^T b = \|b\|_2 e_1^{(k)}$$
where $H_k \in \mathbb{R}^{k \times k}$ consists of the first $k$ rows of $\bar{H}_k$ and $e_1^{(k)}$ is the first column of the $k$-by-$k$ identity matrix. It is now straight forward to solve the linear system
$$H_k y_k = \|b\|_2 e_1^{(k)}$$ because it is almost upper triangular. The standard procedure is to use Givens rotations to reduce it to upper triangular form. The beauty of this procedure is that the work can be recycled if we decided that we need to increase $k$.
In summary, the orthogonality condition is not useful for choosing a good sequence, but it simplifies the problem of computing the sequence.
Good sequences can be often be obtained by preconditioning, i.e., by effectively replacing the linear system $Ax=b$ with another linear system, often of the form $M^{-1} Ax = M^{-1} b$, which has the same solution, but a sequence that converges rapidly.