Recently learned this myself, it's for a couple reasons. The further your sight is away from riser the more sight radius you have. Helps to align peep and opens pin gap. Best I understand is comparing a pistol sight to a shotgun site. I put a longer dovetail on my new bow and like it that way. I used to keep it as close to riser as possible thinking I wanted compactness but stabilizer sticks out just as far.
Depends on how far you want to shoot. With the site window further out your pin gap grows. So you will not be able to have as many pins in your site. If you can only fit 5 pins in the site instead of 7 you lose twenty yards.
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