I prefer the swivel be tucked up inside....I use split rings and the hooks get more than enough room to move from them...the swivel is for swiveling. All my plugs are like this and I have no trouble...to each his own I guess. The old plugs that use hook hangers work the same way and don't hang down that much.
I agree with BF - I think the strike and hookset is more positive using the split rings. Also use VMC hooks or hooks that have a closed eye. No more lost fish because the musta... hooks snap off!