Yup - the notch where they needed room, top and bottom. All bending stress focuses on changes in shape or direction.
I have to believe that perhaps 50% of the people who make this stuff have no engineering background at all - they just copy someone else's work.
If you need more room, since the strength is already fixed at the cross-section where clearance is needed, the proper method is to remove even
more material, and leave the largest possible radius at the transition.
If those were mine, I'd be buzzing away at the cuts with my tiny Dremel, just blending the cuts into the parent casting.
Yes, small needles are better because you get more. Does that seem counter-intuitive? Each needle (assuming equal length) makes only line contact on the shaft and in the rocker, so more = better.
The smaller needles also have lower moment of inertia, so when they stop and change direction (every cycle) they begin rolling properly rather than skate for a millisecond.
The smaller needle also allows the rocker to have more material around the shaft, or a bigger shaft, since the needles are obviously smaller OD by 2 × the difference in needle thickness. It's small but it's in the right direction. Replace 1/8" needles with 1/16", you get 1/8" free room to bulk up another component (or don't, and save weight).