If your crosshair is lower, you see less of the ground, more of the sky.
It was moved from the center so that the shots line up with the origins of the gun "more naturally." It has nothing to do with play and it makes aiming up for headshots feel like driving a car with a lowered rear suspension.
Fake E: Valhalla also doesn't play better than Sidewinder and Battlecreek did. Bloodgulch was more tongue in cheek because I know everybody hates that level, but if it wasn't fun then it wouldn't be popular. That's the same justification I know you all will give for Halos 2 through 4.
Never really bothered me. I started with lower-screen reticules, even though I played Halo PC right after playing a bit of Halo 2 with some friends. Either way, I just up my sensitivity to 5 and can feel just fine.
It's not about controller sensitivity at all. It's about the awkward angle the character is looking at from your perspective when you raise the reticle to where it should be in the first place.
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