You've moved that LED back to being above the bjt, but by way of explanation, why; the reason LED on emitter is not so good is that your driver to the bjt base would then have to 'overcome' the LED voltage.
That is, the usual nominal 0.7 V when driving transistor has to have the LED drop added...so, if LED is, say 2.2V then that's 2.9 volts that your processor output needs to be. That's marginal, but worse for the IR type, as the voltage requirement for the processor starts approaching RAIL or the max possible.
When put on the collector, most designers don't even deal, much with the 'Vsat.' at nominal '002'...just assume LED connects to ground.
I think maybe high power circuits, like for driving audio speakers at high power (30 watts etc), those start needing consideration, the Vsat. on power output circuit transistors.
2n2222 is also a nice NPN for LEDs.