A down eye certainly looks like it closes down the hook gap.

I remember reading that the turned down eye is supposed to help hooking and holding fish. The theory is that the line attachment is more in line with the hook point when both are below the shaft.

Mustad has some good hook information, including some history on their website:
[url=http://www.mustad.no/abouthooks/index.php:9870e]http://www.mustad.no/abouthooks/index.php[/url:9870e]

[This message has been edited by Bruce Norikane (edited 07 June 2005).]