I'm sure they were just planning on extending the arterial minor road past the freeway to facilitate current or future development. I think you're right when you said the traffic flow is less efficient, and I think your solution is a lot more efficient too! But I bet the town chose lower efficiency for less utilized space to minimize land acquisition costs. Plus, the traffic on the interchange, even with the expansion, is probably appropriate for the interchange design. And if there's gridlock, I guess you should submit this plan to your township council then lol!