Increasing the overhang as you decrease spacing is not logical when you try it. (Don't think, try it.) You want to increase or decrease spacing to get the proper control response that is needed. Too wide, things move too fast and the plane gets jumpy. Too narrow and you don't have enough response, or have to move the hand too far to get the proper control.
But too much overhang adds a self-neutralizing element that you don't want. It was Windy who pointed out to us once that we had too much overhang on our handle. It was a home made handle with a fixed amount of overhang. When I cut that down, it improved Matt's flying a bunch. He now makes very small incremental spacing adjustments throughout the year as his flexibility changes or he makes trim changes, but he would never want to go back to an increase in overhang along with those changes.
I would suggest as small of an overhang as possible. For those who have adjustable overhang built into the handle, get that bar down to the knuckles. The control response will be much improved.
I like Ted Fancher's design. I still think Ted ought to set up a shop in that upper lounge area of the 747 and make handles while he is on one of those long Asian runs. Use the time, productively, Ted. That's what auto pilots are for.