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I've heard that some vendors have the cups that are the correct dimension but I don't know. Bratton's was mentioned to have them. The felt gets compressed so much and should be permiated with grease to a point that it won't hold any water. Ford hadn't figured out yet that the thrust bearing should be placed in this area with the dust seal up on top of the pin. They eventually changed them to be that way in the V8 era. Using the king pin as part of the brake actuating system was likely the reason that they did it that way on the model As. The way it was initially done, it put a lot of load on the king pin retainer bolt. It works but it has a tendency to fret the king pin bolt and cause it to loosen over time. The looser it gets, the more pressure comes to bear on the dust seal in the bottom there.
The dust seal could likely go with the cup up or down but it should work just as well either way as long as the king pin bushings all get the service at the prescribed intervals like they should