The dogs and handler in Bon's "set 2" of pictures shows what appears to me to be a handler and two different dogs who are accustomed-to and comfortable with that configuration. As such, it probably works for them.
I personally feel glad that my dog is comfortable with my knee at his shoulder and is not sneaking a step or two ahead just to keep out in front of me. For me personally, it feels, as KJR mentioned, like very subtle movements - mostly with my outside leg, can have pretty dramatic impact on my dog's attention, alignment and focus - when we are dogshoulder-handlerknee aligned.
Earlier, someone mentioned the idea of getting the dog lined up, then "stepping back" once he's lined up. I remember doing this exact thing at a workshop. The guy who has won more trials than I ever will said "You had him lined up perfectly! Why did you then move back and pull him off???! " Actually, that very mark is my avatar picture.
Thanks to all of you for your feedback!