Pleased to be of service.
Yeah a bit of a lip is nice but not always easy to do with the way the kits are engineered. Some cars don't have much of a lip in 1:1 either.
Trouble with gluing the insert in first, is it makes for a hell of a struggle fitting the body. There is a good reason why Tamiya leave the arch cut off where they do. It doesn't look the best, but makes for a whole lot easier construction. The main area you will want a good fit is at the front and back of the arch, doesn't matter so much at the top since it will be hidden by the tyre.