Wow. That elbow needs to be behind the hip actually grazing to glute medius and minimus. Crazy.
Yes! It seems counterintuitive, but closer/more contact is better. A kid can have a bruise on the hip bone and by making the correction, they can immediately throw without pain. I like "grazing" as a descriptor. Brush isn't a whack or bump. It's a great method for having a consistent release. It's kind of scary to talk about it on the internet because, like shaker1 said, sometimes someone might overemphasize "lead with the elbow" or force flexion.