I upgraded Openwrt from 23.05 to 24.10 via sysupgrade(ext4) file. Upgrade went smooth, system boots and all partitions and data looks good but after checking fdisk -l /dev/sda I noticed taht sector and I/O sizes has changed.
Looks like OpenWrt is now detecting the real physical sector size (many devices "lie" about it), and has decided to optimize the IO operations to match that size; I do not think there is anything to worry about here.
The on-disk image is smaller, so support for older disk limited devices is maintained longer.
You can do a firstboot recovery with squashfs, whereas with ext4, there's no RO partition from which you can recreate the initial install.
The latter also allows some traceability, with ext4 there is no way to know if some code or data ever existed on the device if it gets deleted (be it intentional or malicious).