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The groove is where the top and side panels are welded together. It does flex a tiny bit; hard filler will crack.
I don't think it really does, or should, function as a drain. I believe the strip is supposed to keep the water out, but it too gets rigid and leaky over time.
My old '85 Civic developed a leak right there; took the strip out, botch repaired the leak with some rust killer, glass weave and resin (it was on its last legs anyway, rusting structural parts and all) and put the strip back in. Fixed that one leak.
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2011 Honda Insight + HID, LEDs, tiny PV panel, extra brake pad return springs, neutral wheel alignment, 44/42 PSI (air), PHEV light (inop), tightened wheel nut.
  lifetime FE over 0.2 Gigameter or 0.13 Megamile.
For confirmation go to people just like you.
For education go to people unlike yourself.
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