The holes in the side mean that the water collects at the bottom (this is the reservoir) this bit below the holes stays full of water. Don't let it dry out between watering as that will cause mineral deposits to build up more. This method of watering is always wet in the bottom.
Some orchids will loose all roots when switched to this method, which is why its best to switch them when there are new roots growing (new roots, not just new tips on old ones). However some orchids don't loose their roots so you might be lucky. I've had some NoID phals that didn't loose their roots. I've also heard that Paphs might not, but my oncidium types definitely did loose their roots.
Not sure on the question about the height of the pots, except that the wicking of the lecca means the taller ones are likely to be dryer at the top