Tom -
I would suspect that the thru-rod would try to poke a hole in the hull if it were another 4" to 6" longer - but it's not longer, so I'm not sure what the concern is. The total "throw" of the rod on my boat is a little more than 8 inches, according to the instruction manual.
By the way, the mechanic who installed my HLD350 put it on the starboard side, and the bronze tiller arm was installed facing forward. This was a huge plus over putting it on the port side, with the arm facing backwards, for a couple of reasons:
1) It was out of the way of the other components on the port side, including the emergency bilge pump and the exhaust through-hull. I just upgraded from an old Perkins to a new Yanmar, which prompted a change in the exhaust port from 3" to 4". An HLD350 in that space would have had a problem fitting!
2) installing the bronze tiller arm facing forwards means the HLD350 had to be installed on the cockpit bulkhead behind the helmsman, not the interior bulkhead separating the steering compartment from the aft-most lazarette. Two good things about this - the installation was easier, and it resulted in a little more room for the throw rod when my wheel is full to STARBOARD, putting it away from the hull (at that location, the hull is expanding as you move forward).
I'll try to get pics next time I'm aboard.
Regards -
Matt