Yes, it completely changes the beam profile. There will no longer be a hotspot, just a wide, generally diffuse beam. It's used for any time when you don't want a defined beam.Also, what's the point of the NFD60? Is it just to diffuse the beam?... Maybe be good for lighting up tents and such?
It does sound like it's developed a fault from the fall. There is not much you can do, except contact your dealer about a repair/replacement. It is in all likelihood an internal circuit/connection issue (especially given the switch LED response), which is not typically user-serviceable.However, just a couple days back I accidentally dropped the EA8 from a height of about 3 feet and it's developed a weird problem ever since.