Jack,
Yes, that is a trick picture.....the braided hose actually is going rearwards to the caliper, away from that massive spinning u-joint!

In reality, there is lots of clearance. It is the hard lines that loop up, to the inside, and then down, that you must watch for!!! I had worn one of them through, or a PO had done so......and I just popped the weakened line one day when I decided to do a "brake system test"......ooops!
Thanks!
Steve