Hello Trucker,
If every caravan and outfit were level it would be great, but it is a utopian goal, and the reason is that nose weights are variable depending on how you load a caravan, and the degree of compression of the cars suspension will vary according to the nose weight and how you load your car.
So it is very unlikely that every caravan outfit will be level. Although we berate many of the EU's directives, the one about towball heights is actually a sensible and practical approach to the issues of nose weight and suspension rates, The regulations imply that when a loaded trailer is attached to the loaded car, the tow ball height must be between 350 and 420 mm from level ground to the centre of the tow ball. That is a maximum variation of 70mm or in old English about 2.8"
All caravan manufactures will be designing their products with the tow ball height regulations in mind. It is impossible to have a caravan that will be perfectly level at all possible tow ball heights. So their product must be able to cope with some degree of nose height variation. This might include nose as well as nose down attitudes. It must be pointed out here that the degree of tilt is not going to be very much for all allowable ball heights, but it will make a difference to the applied nose force.
There is no mechanical reason for a caravan to be towed absolutely level. It just looks good.
BUT, there can be a problem if you aim to set it your caravan level rather than follow the nose loading regulations. The maximum allowable nose force is determined by the lowest value f the either car caravan or tow hitch manufactures specifications. For most caravan the limit sis 100Kg, but most saloon cars&tow balls are limited to 75Kg. (Always check your manufactures specification for your particular models)
For the sake of this example I will assume your car has a limit of 75Kg. Let us suppose you set a caravan nose load gauge so that the caravan is level. The height of the hitch is found to be 375mm. You the load the caravan so it produces a nose force of 75Kg which is the maximum for your car.
When you connect the caravan to the car the hitch assumes a height of 350mm which is still within the allowable range, however as you have noted yourself, as the height of the hitch varies so the nose load force also changes. Because of the inherent design of caravans, the nose load will always increase as the nose is lowered. So now your caravan nose lower so the applied load will have increased to more than 75Kg. This means that the nose load is now in excess of the cars limit, and as a result the outfit is not legal.
You can of course now change the caravans loading to reduce the nose load and bring it level, but most cars have their fuel tanks near the rear, so whilst driving a long distance the reduction in the fuel load will change the tow ball height. So if you set up your caravan to be absolutely level, by the time you reach your destination it will have assumed a slight nose up attitude.
So it really is not a practical exercise to try to arrange for a perfectly level caravan whilst towing, because for so many other factors it wont stay that way.
My suggestion of always setting nose force with the hitch at its lowest allowable height ensures that provide the car maintain the correct range of hitch heights the nose load will remain legal.