Answer
The groove depth $d$ is critical because it determines the bearing area for the ring. The allowable thrust load based on groove deformation is $P_g = \frac{D \cdot d \cdot \pi \cdot \sigma_y}{S}$, where $\sigma_y$ is the yield strength of the housing/shaft material. Even if the ring is made of high-strength steel, if it is installed in a soft aluminum housing with a shallow groove, the housing will deform (dish) at much lower loads than the ring's shear capacity. Engineers must balance $d$ to maximize load while ensuring that the wall thickness of the shaft or bore is sufficient to prevent hoop stress failure.