I guess I could go ahead and cut a notch in the top of my bracket and see how it works over the top instead of mounted under the fork clamp.. It would raise the bag up as well, so maybe that would be enough to keep it off the fender. I'm guessing that the stainless I used will still be a problem though, but it would give me an idea of how it works up there and could serve as a template for a newer one made out of thicker metal.
Cheers,
Brad