since you can bend, and because I cannot tolerate this "blade" waiting to cut a leg...
what if you cut your bolting tabs outward, and bent the rack to have the arms vertical, like this:
I really do appreciate your input to make this safer, but I honestly believe that in the event of a get off, the rack slicing my leg would be the least of my worries. If it was steel with a serrated edge, I might be worried. But this will be a blunt piece of aluminum with no burrs or other sharp edges on it.
My first design would have been a disaster, and I have you to thank for making me change it to the safer shape that I have now.
In my research, other racks have a similar amount of "overhang" over the rear cladding. Yes, they do have a bit of "rise" similar to the stock grab bars, but they stick out over the edge a very similar amount.
Your design modification would reduce that risk, and would make the rack stronger overall, definitely. But the brake that I have access to wouldn't be capable of bending the aluminum that sharply, and also wouldn't be able to do complex bends that are that close to each other. It would also not allow me to add my "rise and level" bends that I have now.
My goal was to make this as simple as possible, with the tools that I easily had access to, with no fabrication needed after it's cut and bent. I think this design accomplishes that goal!