I get it, but if you have an inch-wide channel of air flowing above the plate, you're making your wake an inch taller than it needs to be.
My answer was going to be that the illumination goes to the right and left of the plate. However, I just measured my CAD model, and the transom will be roughly 6"x23". A US plate is 6"x12", which leaves 6"x5" for each taillight cluster. I probably won't find three-color clusters that small, so your solution does sound pretty good after all.
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