Not sure for 1, but I would guess it is to do with that being the easiest way to attach a tether with swivels to the crystal case and still be able to get the lights out with a minimum of fuss. You could try a larger shackle, or something along those lines.
For 2, the knot near the handle looks like it may slide. If so, that will shorten the tether if you slide it towards the swivel. Otherwise, just cut it and reknot it with a better length?
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'We're all mad here. I'm mad, you're mad." [said the Cat.]
"How do you know I'm mad?" said Alice.
"You must be," said the Cat, "Or you wouldn't have come here."
- Lewis Carroll, Alice's Adventures In Wonderland