Stop in for a cup of coffee

it's probably not to scale... I would expect your fender flares will need to be a lot higher on the fenders in reality
Not necessarily. Where they are placed will be dictated by vehicle height, suspension travel and wheel dimensions. Typically fender flares are put on after the full suspension and wheels are in place and final ride height is set. Until then, the wheel openings cut outs get modified as you go with the front fenders last since you can leave them off until everything else is set up.