Except in transport, the toplink deals mostly with compression force. However, if transporting a heavy rotary cutter, your comment is absolutely valid.
whether the top link is in compression or tension the load on the welds is the same - it's a shear load perpendicular to the weld group. since the load is centered about the weld group it doesn't really make much of a difference. there is a slight angular component to the load, since the top link isn't going to be dead perpendicular at all times, but asuming the load is perpendicular the 1/4" overlap isn't much of an issue.
if you had that same 5" long group of welds but the top link attached a few inches above the welds then the difference between the 1/4" overlap and 1" or 2" would become very significant, but as long as the load is centered about the welds then it isn't.