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Great question! What you're referring to is often called a plumb bow (or vertical bow). Unlike traditional raked bows that angle back, a plumb bow drops nearly straight down to the waterline, and yes—increased waterline length is a major reason. But there’s more to it than just that.
While the plumb bow design might feel unfamiliar and not as intuitive as more sloped bows, it’s primarily about improving performance—especially speed and efficiency. For most recreational sailors, this isn’t as critical, but for racers and performance-oriented cruisers, it's a key design feature.
If you’re considering a boat with this feature, keep in mind how it might handle in different sea conditions and what your primary sailing goals are!