What you are showing in your photo is accurate, although not what the engineers told the factory to do. The drawing shows what they wanted, but I have seen many (including my own) that have the stripe continued into the recess.
Personally, i think the ones that are cut off at the ends look odd.
My guess is there was a tape 'mask' that the laid on the car and it was longer than the stripe was supposed to be, so instead of trimming it off the line workers just wrapped it under.
Remember that the stripe color was painted first, taped off, then the rest of the body color was painted afterwards.
By the way, i think my car may have come from the same dealer in Alexandria. Do you know anything about the dealer?