Additional muscle is positive for health, but only up to some reasonable threshold. There is no health benefit to having very high levels of muscle, and in fact it may be negative for your health at extreme levels. E.g. many bodybuilders have trouble breathing, sleep apnea etc.
Both people in the example have 60lbs of fat. 1lb of muscle doesn't cancel out the negative health effect of 1lb of fat
1. https://www.cdc.gov/nchs/data/series/sr_03/sr03-046-508.pdf
As for 2, men in the US are getting shorter because of immigration which adds many confounders.
But also short people living longer has so many more possible explanations than less overall fat.
There is no word "heart" or any to this effect in the message you replied to so I did not understand that was what you were doing. I took your question as an attempt to attack the theory on the basis of prevalence of some heart conditions in shorter people.
https://medlineplus.gov/ency/article/003998.htm
"People typically lose almost one-half inch (about 1 centimeter) every 10 years after age 40. Height loss is even more rapid after age 70. You may lose a total of 1 to 3 inches (2.5 to 7.5 centimeters) in height as you age."
So people DO in fact tend to lose about 2 inches at age 80 versus their younger selves.
1. https://pubmed.ncbi.nlm.nih.gov/10547143/
2. https://www.mdpi.com/2072-6643/15/21/4694 (referencing the FHS there, the numbers are hard to find on the study's website).
The studies were conducted over different time periods when average nutrition changed, and demographics changed. And the study demographics just vary by location.
Height loss with age is incredibly well documented. Here’s a few more studies.
This is just basic medical textbook information. No one in the world is arguing that this phenomenon doesn’t exist.
https://pubmed.ncbi.nlm.nih.gov/32611342/
https://pubmed.ncbi.nlm.nih.gov/24962157/
https://pubmed.ncbi.nlm.nih.gov/10602346/
https://www.sciencedirect.com/science/article/pii/S266703212...
Again, from your OP: "so unless people naturally shrink 2" with age"
Are you denying basic science here, or what? Like, what is your deal?
It’s not the fat that kills. It’s oxidated lipids that kill.
https://www.sciencedirect.com/science/article/abs/pii/S24518...
From what I have heard from doctors, there is a clear sequence:
intra-organ fat (really bad) > visceral fat (quite bad) > subcutaneous fat (relatively harmless).
The nasty detail is that some people gain relatively more visceral fat than others. These three fats are correlated, but the correlation isn't the same in every human. Some have better metabolism and don't store as much fat inside as others do.