When you set up OR ranges, especially in fullring where there's so many people behind you, you need to look at equity against likely calling ranges instead of equity against a random hand.
if you look at fullring and a very tight calling range you get this:
Equity Win Tie
MP2 37.25% 36.77% 0.47% { 98s }
MP3 62.75% 62.28% 0.47% { QQ-44, AJs+, KQs, QJs, JTs, T9s, AQo+ }
Equity Win Tie
MP2 41.65% 40.30% 1.36% { KQo }
MP3 58.35% 56.99% 1.36% { QQ-44, AJs+, KQs, QJs, JTs, T9s, AQo+ }
i.e. the equity gap is not that large.
The reasons for 89s over KQo
1) KQo is dominated often, people flat AK these days most of the time and it's pretty standard
2) when you hit a top pair you rarely to never get 3 streets of value because your MP1 range is so Kx Qx heavy it's obvious you hit those boards to decent villains. with 89s you don't really flop good pairs, but you have more draws, backdoor draws that add to your equity so bluffs need to work less often, you have disguised value hands that can get 3 streets etc.
3) 89s helps you cover more flops, ie. if you would open KQo in MP1 over 89s and wanted to keep reasonable opening frequency then boards like 896 793 etc. you would have just overpairs+sets
4) 89S plays way better oop 3way. Which will happen a good amount when someone calls and people with good odds flat behind. 3way top pairs lose on value and disguised 2 pairs, tripps and strong draws gain on value, and 89s is just better in this regard.
5) On the other hand KQo has a blocker effect, so instead of 38 QQ+ AKo, AQs+ theres 27 combinations left in the deck, i.e. you take it down preflop more often.
Also if people widen their calling ranges to include things like QJo, Q9s etc. the equity gap between KQo and 89s widens again, and since it's likely that people that flat these vs MP1 are fish top pairs gain in value again so KQo becomes better e.g. if there's nits behind you and one fish in the blinds