You are correct, the tips are inboard by about 6-7 inches. It does not look funny at all. Since this is a 1992, the exhaust cutout in the bumper is on the very bottom side, so you can't really see it from above or behind.
I had the exact same thoughts when I was having them install it. So I had the shop remove my original muffler and tack weld the magnaflow and bring the car down to the ground. No one said anthing and just let me look at it for about 5 minutes. I looked from EVERY angle, told them it looks fine and to make it happen.
I went with the SS because thats what they had. I am the second owner of the 400e. I purchased it last year. It only has 73k on it now, so I have no idea why the original only lasted that. The holes in the original were pretty small, they just got bigger when I "inspected" them with a large screw driver. ;-)
Thanks for all the comments. The car looks stock for the most part. The paint and body are in EXCELLENT condition. Looks showroom fresh inside and out.
So far I have done:
Clear front turn signals
94-95 clear rear turn signals
euro headlights from a 94+ (hood upgrade soon)
500e sway bar (front only, rear next week)