Yes- it's supposed to make the villagers stay out socializing later into the night! I thought that was kind of cool.
I used to TT since I don't get home until around 6:30 and by the time I cook dinner etc., and any other stuff I need to get done during the evening... I sometimes would have a bit of a panic when I saw it's like 7:45 and I wasn't even close to being able to sit down and play Animal Crossing for a bit!
The thing is I can usually play late at night OR super early in the morning - before work! XD So I wasn't sure what to pick!! Night Owl or Early Bird ordinance?!
But it's more likely that I can play at night so I went with Night Owl - and I love it! - plus you can go bug hunting on the island and then still come back and sell your beetles etc.! Win.