Having the same thing for several months now (AB's for 3 years, but brolly since August 2005) I don't remember the rod sticking out quite so much and I remember the black shroud/umbrella interface being in front of the reflector, so my guess is you need to extend the rod a few inches forward of where it is now.
Also while close and far better at diffusion then an umbrella, it is not quite as good as a softbox.
As to heating up, I don't use my modeling lights continuously so based on my use I don't anticipate any problems, but if using 150 watt modeling lights on all the time, you may indeed need to watch the temperature. Of course your first indication is likely to be smoke followed by the foomp of a flame or the droplets of synthetic material melting. However given the metal reflector and as long as the opening is on the top, the odds are very good that you will never have a problem with excessive heating.
Lastly as to cool,
I agree they are not as cool looking as softboxes or umbrellas, but if setup right they work very well at taking nice looking pictures and that is way better then looking cool.
Just my experience and opinion,