>>9594579Dropdown hips create more space above the thigh, which creates a wider range of motion. Figures with dropdown hips can do high kicks, sit easier, and do more compressed poses due to that joint. Best of all, it all collapses back up, so you don't have a gappy looking figure in plain standing poses.
Collapsible joints of all sorts are a great idea, it's a shame that you usually only see them on pricier figures because the engineering makes them too expensive or fragile.