A possibility is that, with the grandstands much closer to the green, it would change the nature of the hole. Grandstands (temporary immovable obstructions) are attractive nuisances to professional golfers. Given a choice between the ocean on one side and a TIO on the other side the obvious solution here would be towards the TIO. In this case the organizers left a large playable area to the right of the green, which, with the tougher hole locations, would leave a short-sided play back towards the green.
Personally, I don't like the spectator bulge towards the tall cypress tree. I'd have kept the on foot spectators further back, which might add a false enticement to a wider lay-up area.