It doesn't look too wrong - I'd just add time trial bars like Cinelli LA84 (or flat bars with bar ends) for the stoker. The hand holds will then end up either side of the saddle. However, you don't have to worry about knee clearance when turning.
On most tandems there is never enough room for the stoker, who always ends up sitting rather upright. However, drop the stoker further and his / her nose ends up right against the captain's back (or worse), pr the tandem gets so long as to be unmanageable.