Exactly. The moisture comes from the compressor, through the hose, to the filter.Other way around, air always moves up while moisture settles low. Item to be filled always above everything, make moisture work uphill.
In your picture, the hose from the compressor goes into the filter at the bottom. Which means that the moisture never even makes it to the filter, or possibly doesn't reach it as easily?
I could just be over thinking it though, and it doesn't really matter much.
Or, maybe your way is better because that hose loop acts like a trap and less water gets to the filter, which means less chance of any getting past the filter.
Hehe...
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