Here's a better explanation of post # 3, pictures tell it better:
This is where one would expect the levers to stand off, relative to the bar.
This is about where your brake levers stand off relative to the bar. This is with the release opened.
Shoot, I should have taken shots from the front as well, to better illustrate. It may even be that those levers were designed for the safety ("turkey") levers (like what you see above). If so, that would stand off the arms even further.