Chronological order is a neat idea, but it structurally weakens the series. You start with 'The Magician's Nephew', which is a slower, more philosophical creation myth. Then you go to 'The Lion, the Witch and the Wardrobe', which is a faster-paced adventure. Then you hit 'The Horse and His Boy', a desert adventure that feels tonally disconnected. The pacing is all over the place.
Publication order groups the Pevensie-centric books together (LWW, Caspian, Dawn Treader), then moves into the darker, more spiritual ones (Silver Chair, Last Battle), with the prequel and the standalone placed where they provide breathers. It's just better storytelling craft. So yeah, the timeline is MN, LWW, HHB, PC, VDT, SC, LB—but I'd only read it that way for academic analysis.