If you examine that same area with the MoI generated model using PaQ's method, it looks like this:
That same area is very nice with this method.
But instead you get the tangent-only area in a different location - where the top plane touches the blends.
I would think the best compromise shape would probably be to do those side blends but only about 3/4 of the way towards the top instead of all the way to the top. Then fill in the remaining area with an N-sided patch or "fill" instead of trying to fill such a larger area with it.
- Michael
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