Thank you both. Here are a few updates from yesterday early evening.

The bag that has officially been designated #3 - panels attached to faces and awaiting the gusset.


You can see that the top flap for #3 IS the one with the laced edge. Here's a detail shot.


I really like the laced edge. It does add a lot of time over the sewn leather edge, but I think the effect is quite nice. This has been laced in the same way as #2, with the flap in halves so the lace travels down toward the center from both sides. This also adds a bit of time, but I think it's time well spent.

Anybody have any thoughts on the laced edge? Too structured for a 'casual' bag?

I love the feel of the laced edge, and #4 may end up with the same treatment.