I've tried diluted paper developer for ortho litho film. Contrast is still excessive, although not the pure halftone that results from the A and B litho developers. Developing times are so short, even with highly diluted paper developers, that uneven development is a problem.
Back in the '70s and '80s there was some interest in getting the maximum resolution from 35mm negatives by using document copying films and special developers to get pictorial contrast. I believe these developers would give better results with ortho litho film than diluted paper developer. I have had fairly good results from D-23 diluted about 1:14 for about 5 minutes, give or take a little. Exposure is about EI 0.5, or 2 seconds at f16 under sunny 16 conditions. I've tried the recommended exposures of EI 2 to 6, and get no shadow detail and excessive contrast.
The tonality of these negatives is different than pan film, and may work for some scenes but not for others. I use ortho litho film now only to see what the lens will do of an old camera I bought. Film resolution is very high, it's nearly grainless, and it's easy to cut a piece of film under a safelight that will fit over the film gate.