Sorry for the triple post but that last one made 10 so now I can post pictures.
Like seamius and CliffordK suggested, I took one of the spacers off and Id like to hear everyone's input. I would love to try the other solutions that people suggested but most of them require me to either spend money on new parts or dish my wheel off-center which would prevent me from using the threads on the other side of the hub.
Like I mentioned before, I don't really have a huge issue with my chainline that effects the quality of my ride. It probably would at most effect the longevity of drivetrain but its not like I have 100s of dollars invested in it. I'm mostly just doing this for a bit of fun.
That said... I don't think crashing or ruining new hubs is fun so I want to make sure everything I'm doing is above board.
So here are some pictures with only one spacer. Better? Still stupid? Is the minor improvement not worth the risk?
I ended up taking off one of the spacers.
And I still get a pretty strait chainline.
The lockring goes on much more satisfyingly now. It looks to be sticking off a bit still but it has a bevel that makes it look like that even without a spacer. All of the threads are engaged.
Took a closer look after my ride today and it seems that this may be contributing to weird chainline issue (?). Looks like the bottom bracket isn't flush with the frame. I had this installed by a bike shop because I didn't have the right tool so I hadnt paid it much attention till now. Since I didnt do this myself i dont know how it works, could I just screw it in further to shift the cranks over a few mm? Or is that not how it works?
PS. Please forgive the griminess of my bike in these photos. I commute 8 miles each way in downtown Chicago. Its January...