in upside down forks the normally heavy fork bottoms are now at the top and no longer directly connected to the wheel. The spring + damper mechanism can now work with more efficiency because of less weight driving the spring.
USD forks aren't (theoretically) any bigger diameter than RWUs... it's just that USDs are generally on big bikes, so appear bigger.
90% of their use is pose value, the rest is down to USDs being able to handle heavy forces better (don't ask me why, I'm no engineer)
A bigger front wheel has 2 advantages...
1. It's bigger, so handles bumps better
2. It's bigger (again) so has a higher gyroscopic effect, making the bike more stable.
in upside down forks the normally heavy fork bottoms are now at the top and no longer directly connected to the wheel. The spring + damper mechanism can now work with more efficiency because of less weight driving the spring.