Very nicely done and documented, Terry - good job!
While a knee space would have been ideal, you will not find such a thing at Home Depot. Most dedicated factory stands for smaller lathes have such a space but that is not the case here. One thing that you might do at some point is find that you need to move the lathe closer to the front of the bench top if your back starts to complain. Otherwise, I think you're going to be okay.
Ordinarily, the casting for the locking bolt is a weak link. However, it is now sitting flat on top of a 1/4" thick steel plate for added support underneath. The stress is now transferred to the plate. Moreover, Terry used a spacer nearly as wide as the locking bolt ear up top so that ear is even more well supported. Yeah, it might crack but it is far less likely to happen with this arrangement; you do not need a ton of torque to lock the lathe down. Quite frankly, I think using shims would lead to more stress on the ear because the ear is floating in mid-air when using shims.
You would think that trying to twist/un-twist an induction hardened short bed like this would be difficult but this leveling arrangement makes it quick and easy to do. Given that all lathes move over time, having a fast and precise method of leveling the lathe is sort of a big deal.
Terry, now you need to do a 2-collar test to fine tune the level and check the alignment of your head and tail stock. In about 2-3 weeks, re-check everything and then check periodically.