Surefire says, "a single-die 3 watt driven at 1 watt for greater efficacy" in their 2005 catalog. Also, from a manufacturer's standpoint it makes sense to cut down the number of variety of things you have to buy -- instead of buying 1W, 3W and 5W LEDs, they can just buy 3W and 5W.
LED's are more efficient when driven at a lower energy source. They do not put out as much light as possible when they are underdriven but the runtime increases.
In the case of the E2O, it uses a 3 watt LED driven at a lower level and actually puts out a little more light than the previous Surefire models that used a 1 watt LED driven at higher levels. The runtime is similar if not a little better also.
Hope that helped. You should be able to get an even better explanation from the Surefire website www.surefire.com