ESRI closed this and decided this is not a bug
So it is not in the product plan and is closed.
The response:
"Intermediate datasets are used to process the data. The datasets are created in the 'memory' workspace which makes the process very fast. The memory workspace sets all text field lengths to 5000, which gets transferred to the output. The longer field lengths do not have any adverse effects. To get the original field lengths: - Use CreateFeatureclass to create a new point FC, and specifying the original table as 'template'. - Append to transfer the features in the output of XYTableToPoints to this new FC."
Yeah I get there is a work around, but is this true?
"The longer field lengths do not have any adverse effects."??? Is this true in map services?
Does anyone know how to reopen a bug that is closed or should I escalate it?