Agreed. I understand it voids the warranty and am OK with that. I really meant to ask if anyone saw anything wrong with the second method. I like that it doesn't involve grinding the porcelain insulators, and would make changing elements (when needed) easier. Changing elements with the first method involves bending the heat shield to get the element in or out. Those are the only real downsides I see to the first method.
I believe the drip tray will just clear the insulators with the second way. If there's interference with the drip tray, then I agree that's not ideal. I like the stock look and think *maybe* the porcelain insulators provide a bit of extra safety margin for the wire. Probably not much though since the temps are so low compared to the rating of the wire, but in theory at least.