The #3 sail plan was intended to depower the boat in big air. Going to full hoist height adds sail area at the top and provides more heel which is undesirable. Some use a #2 for a transition between the #1 and #3, but is has a very narrow effective wind range. Fully crewed, the #1 / #3 sail combination works for most boats that can swap headsails.
Ironically, the older boats such as the J/30 were designed with big overlapping headsails. Many of the newer boats (e.g. my J/109) were designed with non-overlapping headsails. For PHRF, I get trounced if I use the OD rating and the wind is less than 10 kts. I have a rating with a 145% genoa that keeps the boat competitive in light air at a cost of 3 seconds per mile.