Thanks for bringing this up! I looked into this issue with an installer and got some interesting information...
The light is most definitely designed to be mounted with the "weep hole" at the top. Well, it's not really a weep hole at all, it is just a hole that the wires are fed through. On the lense of the light there is actually an imprint showing "top" for mounting. You will also notice small holes at the top and bottom of the lense. These holes may be there for draining purposes, or just as a way to remove the lense. Being that these holes are rather small, I could imagine them getting clogged up and not being able to function as weep holes. Regardless, water does have a chance to get in the lense.
I also discovered that the light isn't installed that way just because the directions say so
You will notice on the back side of the light that the area meant to be on top has a sharp 90 degree edge. The area meant to be on the bottom has an angled edge. If the light is installed upside down, there is a chance for that sharper corner to wear into the canvas of the top when the top is closed. This most likely wouldn't be noticeable immediately, but could cause wear problems down the road.
Solution = SMB will now be drilling three small holes into the bottom of the light to allow water to escape...one in the middle and one on each side. I urge any owner to do the same if this problem relates to your vehicle.
Thanks again for this information! Customer feedback like this is essential to allow the SMB products to constantly improve.