(The first reason was tension on the line.) The reason I use small hooks is this: as far as I know, there are only two reasons why a trout would spit out a worm 1) it feels tension on the line, or 2) it feels the hook
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Tropical saltwater floating lines are typically lighter than cold saltwater lines so it wouldn't be surprising if some rods would do really well casting tropical lines and not so well casting heavier coldwater sinking lines, or vise-a-versa
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It creates a loop that stands out at a right angle from your line, which helps prevent the hook from tangling around the standing part of the line