I work in a field (elasticity reconstruction) that frequently uses standard Finite Element methods to solve the first order PDE, where we are given u and solve for mu and lambda:
$$ (\mu(u_{i,j} + u_{j,i}))_{,j} + (\lambda~div~\mathbf{u})_{,i} = -\rho \omega^2\mathbf{u}_{i} $$
known as the Navier-Lame equation. Here we try to solve the "inverse" case (given u solve for mu and lambda) which is a first-order PDE (while the equation is more commonly solved for u which is a second order PDE).
The results overall have been a bit underwelming. Over the past year I was able to speak briefly about this problem to four quite prominent applied mathematicians. Their consensus was that standard FEM, while appropriate for elliptic PDEs of second order, is an inappropriate and unstable mathematical basis for a first order PDE, while better solutions might be Finite Volume or discontinuous Galerkin.
All I remember of the discussions is that first order PDEs have characteristic curves and can handle jumps, while finite elements, like second order PDEs, are smooth in C1 throughout.
I cannot find any supporting information for this viewpoint in a text. Can anyone explain why standard FEM is a poor choice for a first order PDE? Or is this not right?