The groove along the edge of an iron's soleplate has a practical purpose. Good Housekeeping explains that it helps the user maneuver around buttons, bringing the pressing surface close to surrounding fabric without setting the hot plate directly on the fastening. That can be useful when a shirt is creased in the narrow spaces beside its buttons.

Look at the shape of the soleplate before trying to press those small areas with its broad center. The feature offers a more controlled route around an obstruction, rather than a reason to iron over it. It also explains why an apparently decorative detail can make everyday shirt pressing easier.
GarmentCare Guide 