Well, that's where they always do get put: (a) since often they carry the yacht's name, and it would look less good inside with the guardwires running across, and (b) the upwind one, which is taking the force of the wind, is held in place by the guardwires and does not billow inwards.
The most important thing though is to provide space at the bottom so that any wave running down the leeward deck can escape beneath. This can be done by lacing them with shockcord on the bottom edge. If you don't, then the eyes will quickly get ripped out.
Agreed. Looks a bit silly with guardrails and staunchions in the way of the name. No real need to lace them along the bottom at all, if they come down to deck level.