Jersey axe, another half an inch?

Looks good to me. I've seen some people chisel out the space where the lugs go, leaves a flat line that makes them look apart of the handle.
 
Looks like it's down far enough for me. Maybe another 1/8" wouldn't hurt. And I can't tell for certain from the photos but your hang looks a little closed.

Open-Closed%20hang.jpg
 
Tough to tell from the pics but the front of the shoulder looks kinda thick .... I think you said it's an HH handle so, yeah it's probably thick. I'd thin it down = to the thickness of the axe head at the same point or maybe a bit thinner. Will save you a few curses down the line. You drive the head through a round or something to split it and the handle is thicker than the head ... you can do the math. It won't eliminate the problem but it helps for those times where you get a little too greedy with your swing.
 
I'd flare it more past the lugs. That being said, I myself am kind of new to rehanging, am no expert by no means but if it doesn't look nice then it bothers me, hence why I redid some handles.
 
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