Gopher, you have received some very good tips here. Pay attention and follow the good advice.
Now without anything to back it up, I'd say you may be working a little fast, perhaps impatient to see the final results and in doing so you are skipping a few of the refinement points that will make your sheath look better.
The straight strap you used to mount your stud should be about half as thick as it is, and then should be skived top and bottom down to about zero. This will make it lay down really smooth on the front of the sheath without that big "step" transition. Also you might try a more stylized shape, like a chevron or some other carved shape for the bottom of the overlay, and then take the top all the way to the mouth of the sheath.
See the attached photos below for examples of the chevron and diagonal basket weave stamping. The second photo is diagonal geometric.
Also, for my taste at least, the retention strap leather should match at least one of the components of the base sheath.
Good Luck
Paul