It's probably thinner literally because the engineers at stanley found that it was fine for it to be thinner. It's a plane that's never going to take a 3 hundredth thick shaving.
I had a 020 years ago, but I don't remember the era. The iron was tall and thin. Thanks to this thread, I went out and got another one :? Sunday night impulse, I guess. Good thing is, at least in the states, the 20 costs marginally less now than it did when I sold mine.
I have an old wooden one that works fine, though I'll admit that the 020 is a bit more appealing to me because it's easy to use. It wasn't quite so easy before learning to use the cap iron, though!! (at least not as easy to use it quickly with nice thick shavings as custard has shown in another thread).
As far as tungsten steel vs. water hardening vs O1, I don't think it makes much difference in how much an iron will flex - I think hardness determines that.