In Peskin, the Feynman's propagator for a real scalar field is first presented in a form without $i\epsilon$
\begin{equation} D_F(x-y)=\int\frac{dp^3}{(2\pi)^3}\int\frac{dp^0}{2\pi}\frac{ie^{-i(x-y)}}{p^2-m^2} \end{equation} with appropriate way of going around the poles at $p^0=E_p$ and $p^0=-E_p$ in the complex $p^0$ plane.
Subsequently, an expression for the same $D_F(x-y)$ with $i\epsilon$ which is more common is introduced
\begin{equation} D_F(x-y)=\int\frac{dp^3}{(2\pi)^3}\int\frac{dp^0}{2\pi}\frac{ie^{-i(x-y)}}{p^2-m^2+i\epsilon} \end{equation}
and the poles of the integrand with $i\epsilon$ are located at $p^0=E_p-i\epsilon$ and $p^0=-E_p+i\epsilon$, with $\epsilon$ being a positive infinitesimal.
I have several questions regarding the usage of the second expression for the Feynman's propagator which seems to be standard in QFT literature.
In any actual computation, the residue of the second integrand at the pole $p^0=E_p-i\epsilon$ is equivalent to the residue of the first integrand at $E_p$ because $\epsilon$ is infinitesimal (similarly for the other pole) Am I correct?
The second expression can also be formally understood as \begin{equation} D_F(x-y) = \lim_{\epsilon\to 0}\int\frac{dp^3}{(2\pi)^3}\int\frac{dp^0}{2\pi}\frac{ie^{-i(x-y)}}{p^2-m^2+i\epsilon} \end{equation} Besides the propagtor, any expression with $i\epsilon$ in subsequent diagrammatic calculations are understood to be implicitly associated with a $\lim_{\epsilon\to 0}$ which is always suppressed in literature.
Some authors emphasize that the $i\epsilon$ trick displaces the poles infinitesimally and hence allow us to do the integral along the real axis in the complex $p^0$ plane. What is the importance/physical significance of being able to integrate along the real axis?
In my opinion, if our purpose is simply the construction of the Feynman's propagator for a wave equation/field theory, which expression to choose is only a matter of convention/taste. However, the $i\epsilon$ form seems to be the standard one in the literature of QFT. I observe that the the association of an $i\epsilon$ with the time or Hamiltonian is an essential ingredient of the arguments leading to the final expressions for correlations function or scattering amplitude in many QFT books. Is this the reason why the $i\epsilon$ expression is the preferred expression for $D_F$ in QFT literature?