1) I do not know the answer.
2) I am in the manufacturing business, and it seems to me they found a better way to make the firing pin, so they did. Early M16s came with the large FP, which to me, looks fragile. The smaller FP was probably a design change to make a better FP. They probably had thousands if not hundreds of thousands of the large FP, so they still show up on weapons from time to time, as it was not a recall item.
No different than other changes they made - reinforced mag well, reinforced rear receiver, FA, shell deflector, chrome bores, all designed to make the weapon function better.
Current M4s have even more design changes, a new selector, as well as the feed ramp, to name two. Does anyone make the argument that that M4 feed ramps are a full-auto design part?