Yes, the nosecap actually pulls the barrel back down again, in a correctly set up No1. There should be a tiny gap at the bottom of the aperture in the nosecap where the barrel protrudes.
When (c.1900) they chopped off the barrel of the Long Lee and lightened it for the future "short" rifle, they obviously ended up with a host of accuracy problems relating to bedding and barrel vibration - that was fairly new knowledge in those days, given that most preceding rifles had been fully stocked and bedded. The SMLE's complicated bands, springs & bedding points all appear to be fixes derived from trial-and-error. If WW1 hadn't come along and forced production of millions of No1s, I imagine they would have fairly quickly moved to a heavy-barrel No1 with much simpler bedding - an earlier version of the No1 MkVI and No4.