The bottom of the shock mounts to a bracket that is bolted to the rear axle. To install the drop bracket, you remove the "stock" bracket from the axle. You then take your drop bracket, which basically moves the shock mount closer to the ground, and bolt that to the axle where the stock bracket used to be. What you are left with is a bracket that now has the shock mount moved several inches closer to the ground. Since where the shock mounts at the top hasn't moved, and the shock is a fixed length, it will now not fit between the top and bottom mount (it's not long enough). Thus, the entire rear axle now must come upwards in order for the shock to fit. The entire axle moving upwards effectively lowers the rear ride height without changing the length of the rear shock. In summary: you are moving the lower shock mount down, which forces the entire axle to move up in order for the shock to fit.
The downsides I can see to this are: you better hope the drop bracket is strong - that's a critical mounting point for the shock, and if the drop bracket is weak or inadequate in any way, bad things can happen (bent axle mount being more common) - this is why [MENTION=16454]slow90coupe[/MENTION] feels iffy (rightly so) about making brackets and selling them, your car could get seriously damaged. Also, you have moved the entire axle upwards (another way to look at: moved the body of the car closer to the axle and ground) - better have a pinion snubber in place, some good bump stops on the shocks and the correct spring/damper combination to prevent bottoming out - but this is a concern with any lowered car. The UPR drop brackets linked in a previous post here will end up pushing the bottom shock mount a little further away from the axle than the stock design - it has to do this due to its ability to adjust heights. This will change the rear shock geometry a little - probably not really of any noticeable significance, but it is a change none-the-less. If you are racing your car, there's a lot to consider here. Lastly, using the drop brackets will make it much harder to install a pan hard bar (and maybe impossible). The pan hard bar uses the stock lower shock mount location, and the shock one side mounts to the pan hard bar; using drop brackets will greatly affect installation of the pan hard bar - you will probably have to make something up to get it to work, but then you are altering the original design and everything may go out the window at that point. Nothing wrong with using the drop brackets, just things that should be considered.