My upgraded VMFS-5 does not have a 1MB block size. Why?
Upgraded VMFS-5 partitions will retain the partition characteristics of the original VMFS-3 datastore, including file block-size, sub-block size of 64K, etc. To take full advantage of all the benefits of VMFS-5, migrate the virtual machines to another datastore(s), delete the existing datastore, and re-create it using VMFS-5.