first - that's the original style shock mount - pressed into/ part of, the eye - new shocks [Monroe 3100 or Gabriel 82047] will require a new pin there, more like a bolt .... I think the modern shocks might have the bolts included
2nd, your right, some wierdness by a po that seems useless, but maybe if it hits that rubber bottoming block it was to compensate for saggy springs?
Bill