In some applications, the reduced size is a blessing that enables easier removal/replacement due to cramped access.
Junior...I assume "...to hole..." means 'the whole'.
Regarding the downsizing of some FL-820S to the FL-500S spec change, I don't know FoMoCo's rationale, but the flow rate & by-pass pressure between the two filters is significantly different, reportedly due to a change in the oil pump pressures in some engine applications, e.g. the 3.0 V6 (2009-2011 Fusion).