Less waste. Most people I'd wager are tossing the entire filter into the trash, metal and all. If you are a dealership and getting these cars back for routine oil changes, then I'd assume that they need to figure out how to dispose "properly" of said filters. Just having the paper is less waste and perhaps cheaper for a dealership.
IMO it does make checking the filter media easier...
FWIW, done a number of changes on my 2AR-FE (same as yours). I tighten the housing until it bottoms out, and no more. That o-ring imparts a huge drag and that housing is not going to loosen on its own. That said: I stick with OEM filters and the OEM o-ring that comes with it. I cheaped out once, bought a Wallyworld whatever, and after only 5k the o-ring had gone square--could just about have removed the housing by hand, no tools.
FWIW, I've never used the drain feature on the housing either. I've thought a few times of taking it apart and locktiting the works, so that I could just use a 3/8's drive to remove the house and toss the oil filter cap, but I've just never gotten to that point. The cap I have is one of the early ones and boy does it love to stick to the housing--a couple of times I could not find the cap when I'd go to do an oil change, only to realize: it's been on one of the cars for a couple months!