That lower location is my preferred location for carrying things with the seats folded. It creates a nice depression so that whatever I'm carrying doesn't come flying up to the front seat. Having the seat material exposed negates that somewhat. Yesterday I picked up a bunch of plants from the garden store. Putting them on the flat configuration would have meant having them tip and spill. Putting them in the depressed configuration was better, but I risked having one tip over and dump soil into my Ultra White seats. It's unfinished.
I haven't noticed any difference. In fact, one of the head rests in my previous seat back had a weird bulge from the stitching. The replacements are much more evenly made.